But total growth has slowed substantially from £22 billion in 2023 and £19 billion in 2024

UK housing costs hit a record high in 2025, reaching £226 billion, according to the latest research by Savills.

The analysis of residential mortgages, alongside private and social rents, reveals that housing costs have grown by £8 billion over the past year, and by a significant £66 billion over the past five years, the equivalent of a 41% rise.

But total growth has slowed substantially from £22 billion in 2023 and £19 billion in 2024.

In total, the bill for 8.8 million mortgaged owner occupiers in the UK reached £114 billion in 2025. This means that the average mortgaged homeowner is now paying £13,000 a year.

A rise in costs had primarily been driven by a sharp rise in mortgage interest payments, which have risen 9% over the past year (from £49 billion to £54 billion in 2025).

But while mortgage interest alone has doubled over the past five years, regular capital repayments have increased at a more modest rate. This means that overall housing costs for mortgaged owner occupiers has increased by a lower, if still substantial, 56%.

In comparison, total costs for renters reached £112 billion in 2025, of which £81 billion was paid to private sector landlords.

This means that the annual bill for the average household renting in the private sector has reached £15,000, reflecting a 27% rise in the total amount paid by private renters over the past five years.

Lucian Cook, head of residential research at Savills, commented: The pace of growth in the nation’s housing costs has slowed substantially compared with 2023 and 2024.

He added: In 2025, the burden of higher mortgage costs has been felt mainly by households coming off longer term fixed rate deals. At the same time, we’ve seen a return to much more normal levels of rental growth.