More paid in rent to private landlords than mortgage interest payments

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Tenants paid £45bn to private landlords in the 12 months up to the end of June 2017. The amount of mortgage interest payments over the same period was £26.5bn, according to October 2017 figures from Savills.

Over the last five years, the amount paid to landlords has risen to over £14bn, while the total amount paid in residential mortgage interest has fallen by £6.4bn. In London the amount paid in rent has risen dramatically; tenants now pay £20bn a year, which is a rise of 42% over the last five years.

One of the reasons for the fall in mortgage interest payments is that less mortgages have been taken Despite low interest rates, many people find it difficult to save for a deposit on their first home. This means that people are tending to rent their accommodation longer.

The average proportion of income spent on housing has trebled over the last 50 years according to the Resolution Foundation think tank. Many younger people commute longer distances than the previous generation and live in less secure rented accommodation. They are responsible for half the total rent payments to landlords.

Landlords faced with rising costs due to extra stamp duty and the reduction of commercial mortgage interest payment tax relief, have or intend to increase rents in order to remain profitable. The Labour Party leader Jeremy Corbin, at the 2017 Labour Conference, piqued the attention of landlords by proposing rent controls to limit future rent rises and taxing undeveloped land held by developers

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