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.
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. "We need policy that encourages the rapid expansion of build to rent," said Lucian Cook, Savills' head of residential research.