UK landlords paying 40% more mortgage interest

Upward trend: Residential housing developments under construction in the Hackney borough of London. On an annual basis, the United Kingdom’s rents rose roughly 12% in September, the second fastest increase on record. — Reuters

LONDON: The bad news keeps coming for the United Kingdom’s lettings market, as a surge in mortgage payments pushes more landlords to the brink and threatens to pile extra misery on tenants.

Landlords paid 40% more mortgage interest in August than the same month a year ago, equating to an extra £4.3bil (US$5.3bil), according to a report from broker Hamptons International.