£54bn buy-to-let bonanza for British landlords
British landlords collected about £54bn in rent over the 12 months to June - more than double the amount of mortgage interest paid to banks by homeowners.
Rising house prices have pushed more people into the rental sector, according to new figures published on Monday by the estate agency group Savills.
Meanwhile, homeowners with mortgages have taken advantage of low interest rates and cheap loans.
Lucian Cook, head of residential research at Savills, said: “Fewer people have been able to benefit from the low mortgage rates, and we know that people are renting longer into later stages of life."
In London, the total amount of rent paid - £20bn - is about four times the amount paid in interest to banks by owner-occupiers, according to Savills, and has risen by 42 per cent over the last five years.
Younger people have paid around £24bn - about half of the country's total rent bill - to private landlords over the past year.
The interest paid by owner-occupier borrowers to banks has been declining over five years, and now stands at £26.5bn, a total decrease of £6.4bn from 2012, according to Savills.
Over the same five-year period, the amount paid to landlords has risen by £14bn, while the number of homes in the private rented sector has increased by just over 20 per cent.