Sarah Coles, of Hargreaves Lansdown, said: “Renters face a ‘Catch-22’, because renting is too expensive for them to save to get onto the property ladder, which then leaves them at the mercy of rising rents.”
The average tenant spends £96 more on rent each month than a homeowner pays in mortgage costs, according to government data. Borrowers repaid £174 a week on their mortgage in 2020/21, whereas private tenants paid £198 a week in rent.
Tenants paid a third of their household income on rent, compared to 18pc spent by borrowers on mortgage payments.
“Renters are running to stand still, and have to find enormous sums each month to keep a roof over their head,” added Ms Coles. “It’s no wonder so many face a horrible challenge in making ends meet, let alone save enough to get onto the property ladder.”
A shortage of properties to let and huge tenant demand mean rents are predicted to rise even further, especially if landlords decide to sell up and leave the market.
The National Audit Office warned current regulation of the private rental sector had failed to protect renters and ensure housing was “safe and secure”.
Gareth Davies, of the parliamentary body, said: “The proportion of private renters living in properties that are unsafe or fail the standards for a decent home is concerning. The Government relies on these tenants being able to enforce their own rights, but they face significant barriers to doing so.”
Privately rented properties were less likely to comply with safety requirements than other types of housing, warned the NAO. The Government has committed to producing a white paper next year on rental reforms.