Mar 16, 2026

UK housing costs rise 41% over five years for renters and owners, study shows

a row of red brick terrace homes
Savills identified a large increase in sums being paid in mortgage interest, which grew by 9% in 2025 to £53.6bn. Photograph: Gary Calton/The Observer
Savills identified a large increase in sums being paid in mortgage interest, which grew by 9% in 2025 to £53.6bn. Photograph: Gary Calton/The Observer

UK housing costs rise 41% over five years for renters and owners, study shows

Borrowers coming off fixed deals hit hard as Savills says big spike in interest payments made up half the overall rise

UK households spent a record £226bn to keep a roof over their heads last year, figures showed on Monday, with mortgage borrowers finishing fixed-rate deals particularly hard hit by rising payments.

Overall housing costs have gone up by £66bn over the past five years, a rise of 41%, the property group Savills said.

The rate of increase slowed, with spending up nearly £8bn, or 3.6%, last year compared with £22bn in 2023 and £19bn in 2024.

But Savills identified a particularly large increase in the sums being paid in mortgage interest, which grew by 9% last year, to £53.6bn, making up more than half of the overall rise.

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The property firm warned that this trend could continue if economic turmoil caused by US and Israeli strikes on Iran triggered persistent inflation.

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