Housing costs in the UK reached an unprecedented £226 billion in 2025, according to research from Savills. This total combines the cost of private and social rents along with owner-occupier mortgage payments, providing a clear picture of the strain housing places on households across the country.
Over the past year, housing costs increased by £8 billion, a rise of 3.6%, and have grown by a staggering £66 billion over the past five years – an overall increase of 41%. While growth remains substantial, it has slowed compared with previous years, following increases of £22 billion in 2023 and £19 billion in 2024.
“The pace of growth in the nation’s housing costs has slowed substantially compared with 2023 and 2024,” says Lucian Cook, head of residential research at Savills.
“In 2025, higher mortgage costs have mainly affected households coming off long-term fixed-rate deals. Meanwhile, rental growth has returned to more typical levels. In markets where homeowners fix mortgages for longer terms, the impact of higher interest rates has a long tail. While 2026 initially seemed set to offer some relief, the prospect of another wave of inflation could alter that outlook.”
Owner-Occupier vs Renter Costs
A closer look at the breakdown of costs shows how much more households are spending on mortgages compared to rents.
| 2025 total UK housing bill (£m) | 1 year change (£m) | 5 year change (£m) |
| Mortgage Interest | 53,694 | +4,475 |
| Regular Mortgage Repayments | 60,660 | +369 |
| Total Owner Occupier Costs | 114,354 | +4,844 |
| Private Rent | 81,106 | +1,937 |
| Social Rent | 30,872 | +1,113 |
| Total Renters | 111,978 | +3,050 |
| All Households | 226,332 | +7,894 |
The total bill for the UK’s 8.8 million mortgaged households reached £114 billion in 2025, meaning the average mortgaged homeowner now spends approximately £13,000 a year on housing. A sharp rise in mortgage interest payments – up 9% from £49 billion in 2024 to £54 billion in 2025 – drove most of this increase. Over the past five years, mortgage interest has more than doubled, though regular repayments have grown at a slower rate. Overall, owner-occupier costs have increased by +56% since 2020.
For renters, the total bill in 2025 reached £112 billion, with £81 billion paid to private landlords. This means that the average private rental household now spends around £15,000 per year, reflecting a 27% increase over five years.
Regional Housing Cost Variations
The burden of housing costs is not evenly distributed across the UK. London continues to dominate in total expenditure, despite having the lowest percentage increase over the past five years (+36%). In contrast, Northern Ireland saw the sharpest rise, at +55%.
| 2025 housing cost £m | % of total | 5-year change £m | 5-year change % |
| London | 53,048 | 23.4% | +13,967 |
| South East | 38,750 | 17.1% | +11,020 |
| East of England | 24,203 | 10.7% | +7,510 |
| South West | 17,748 | 7.8% | +5,045 |
| West Midlands | 14,949 | 6.6% | +4,440 |
| East Midlands | 12,774 | 5.6% | +4,070 |
| North West | 19,682 | 8.7% | +6,483 |
| Yorks & Humber | 12,641 | 5.6% | +3,451 |
| North East | 6,231 | 2.8% | +1,944 |
| Scotland | 14,477 | 6.4% | +4,257 |
| Wales | 6,972 | 3.1% | +2,139 |
| Northern Ireland | 4,855 | 2.1% | +1,715 |
| Total | 226,332 | 100% | +66,041 |
London alone accounts for almost a third of the UK’s private rental bill, even though its growth rate over the last five years is comparatively moderate. Northern regions and Wales have seen some of the steepest rises, highlighting the regional disparities that continue to shape the UK’s housing market.
What This Means for Households
These figures illustrate the growing financial pressure on UK households. Mortgaged homeowners are grappling with record interest payments, while renters face sharply rising bills in the private sector. With inflationary pressures likely to continue, both homeowners and tenants may see housing costs remain high, influencing spending on other essentials and shaping the broader economic picture.
Savills’ research demonstrates the importance of monitoring both mortgage and rental costs when assessing the health of the housing market, the affordability of homes, and the distribution of financial burden across the country.
As the UK navigates ongoing economic uncertainty, understanding where costs are rising fastest – and how these impact different regions – will be crucial for policymakers, homeowners, and renters alike.
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