{"id":13810,"date":"2026-03-16T14:10:04","date_gmt":"2026-03-16T18:10:04","guid":{"rendered":"https:\/\/globalgazette.us\/?p=13810"},"modified":"2026-03-16T14:10:06","modified_gmt":"2026-03-16T18:10:06","slug":"uk-housing-costs-hit-record-226bn-in-2025","status":"publish","type":"post","link":"https:\/\/globalgazette.us\/?p=13810","title":{"rendered":"UK Housing Costs Hit Record \u00a3226bn in 2025"},"content":{"rendered":"\n

UK housing costs record 2025<\/strong> as households spent \u00a3226 billion<\/strong> last year to cover mortgages, rent, and related payments, according to data from Savills<\/strong>. The total is up 41%<\/strong> over five years, an increase of \u00a366 billion<\/strong>, even as the pace of annual growth slowed.<\/p>\n\n\n\n

Mortgage Resets Drive the Biggest Pressure<\/h2>\n\n\n\n

Savills pointed to mortgage borrowers coming off fixed-rate deals as the main source of fresh strain. Total spending rose by about \u00a38 billion<\/strong> last year, a smaller increase than in prior years. But within that figure, mortgage interest<\/strong> jumped 9%<\/strong> to \u00a353.6 billion<\/strong>, accounting for more than half of the overall rise.<\/p>\n\n\n\n

Including regular capital repayments, Savills estimates the annual bill for 8.8 million<\/strong> mortgage holders reached \u00a3114 billion<\/strong> in 2025. That implies an average cost of about \u00a313,000 per borrower<\/strong> per year.<\/p>\n\n\n\n

Inflation Risks Add Uncertainty for 2026<\/h2>\n\n\n\n

Savills warned that the pressure may linger because UK borrowers have increasingly fixed mortgages for longer terms. That structure can delay the full impact of higher rates, but extend it once borrowers eventually refinance.<\/p>\n\n\n\n

Lucian Cook<\/strong>, Savills\u2019 head of residential research, said 2026 had looked like it might bring some relief, but that outlook has become less clear due to inflation risks linked to wider economic turmoil. Mortgage markets tend to price those risks quickly.<\/p>\n\n\n\n

Recent pricing shifts underline that sensitivity. The average rate on a two-year fixed mortgage<\/strong> moved above 5%<\/strong> last week, up from 4.84%<\/strong> at the end of February, while lenders have been withdrawing deals and raising rates.<\/p>\n\n\n\n

Rent Costs Rise More Slowly but Stay Large<\/h2>\n\n\n\n

In the rental market, Savills said costs increased at a gentler pace, rising 2.75%<\/strong> to \u00a3112 billion<\/strong> in 2025. Of the \u00a3226 billion<\/strong> total housing spend, \u00a381 billion<\/strong> went to private landlords. That equates to roughly \u00a315,000<\/strong> on average, and Savills said the bill for private renters has risen 27%<\/strong> over five years.<\/p>\n\n\n\n

Regional trends were uneven. London recorded the smallest percentage increase in overall housing costs over five years at 36%<\/strong>, compared with 49%<\/strong> in the north-west and 45%<\/strong> in both the north-east and eastern England. Even so, London still represents the largest share of Britain\u2019s housing costs, at 23.4%<\/strong> of the total.<\/p>\n\n\n\n

House Prices Edge Up as Supply Caps Gains<\/h2>\n\n\n\n

Rightmove reported that new seller asking prices rose by an average of \u00a33,023<\/strong> in March to \u00a3371,042<\/strong>, a typical seasonal increase of 0.8%<\/strong>. The number of homes for sale remains at an 11-year high<\/strong> for this time of year, which Rightmove said is limiting stronger price growth.<\/p>\n\n\n\n

Despite global uncertainty, Rightmove described market conditions as steady. It said sales volumes are about 2%<\/strong> behind last year\u2019s strong level and 5%<\/strong> above 2024.<\/p>\n","protected":false},"excerpt":{"rendered":"

UK housing costs record 2025 as households spent \u00a3226 billion last year to cover mortgages, rent, and related payments, according to data from Savills. The total is up 41% over five years, an increase of \u00a366 billion, even as the pace of annual growth slowed. Mortgage Resets Drive the Biggest Pressure Savills pointed to mortgage […]<\/p>\n","protected":false},"author":10772,"featured_media":13811,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[3769,3773,3774,3771,3772,3777,3770,3768,3778,3776],"class_list":["post-13810","post","type-post","status-publish","format-standard","has-post-thumbnail","category-world","tag-cost-of-living-uk","tag-fixed-rate-mortgage","tag-inflation-risk-2026","tag-mortgage-interest","tag-rightmove-asking-prices","tag-savills-housing-report","tag-two-year-mortgage-rates","tag-uk-housing-costs","tag-uk-property-market","tag-uk-rental-market"],"_links":{"self":[{"href":"https:\/\/globalgazette.us\/index.php?rest_route=\/wp\/v2\/posts\/13810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalgazette.us\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalgazette.us\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalgazette.us\/index.php?rest_route=\/wp\/v2\/users\/10772"}],"replies":[{"embeddable":true,"href":"https:\/\/globalgazette.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13810"}],"version-history":[{"count":1,"href":"https:\/\/globalgazette.us\/index.php?rest_route=\/wp\/v2\/posts\/13810\/revisions"}],"predecessor-version":[{"id":13812,"href":"https:\/\/globalgazette.us\/index.php?rest_route=\/wp\/v2\/posts\/13810\/revisions\/13812"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/globalgazette.us\/index.php?rest_route=\/wp\/v2\/media\/13811"}],"wp:attachment":[{"href":"https:\/\/globalgazette.us\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalgazette.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalgazette.us\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}