There is an urgent need for more build-to-rent homes to meet rising demand and boost affordability in the UK, according to estate agents Savills. For the first time, the total rent paid by tenants is double the total cost of mortgage interest paid by homeowners. Private landlords received £54bn ($72bn) in rent in a year, while £26.5bn in mortgage interest was paid by homeowners. The rental bill has risen by £14bn in the past five years, a 35% increase. Savills analysis for the British Property Federation shows that there are now almost 100,000 build to rent homes under construction or in planning across the UK, up from 48,000 last year. But there are signs that this trend may be reversing.
There is an urgent need for more build-to-rent homes to meet rising demand and boost affordability in the UK, according to estate agents Savills. For the first time, the total rent paid by tenants is double the total cost of mortgage interest paid by homeowners. Private landlords received £54bn ($72bn) in rent in a year, while £26.5bn in mortgage interest was paid by homeowners. The rental bill has risen by £14bn in the past five years, a 35% increase. But there are signs that this trend may be reversing.