UK Renters & Owners Face Staggering 41% Housing Cost Spike

Homeowners and renters across the United Kingdom are facing a dramatic surge in housing costs, according to a new report from leading property group Savills. The study found that UK households spent a record-breaking £226 billion to keep a roof over their heads in 2026, a staggering 41% increase over the past five years.

The bulk of this overall rise - around half - was driven by a sharp spike in mortgage interest payments, as borrowers came off fixed-rate deals and were hit hard by rapidly rising interest rates. Savills' analysis paints a bleak picture for both homeowners and renters, who are being squeezed by the escalating cost of housing.

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Fueling the crisis is the fact that total housing costs have gone up by £66 billion since 2021, a concerning trend that shows no signs of abating. The findings underscore the growing financial strain felt by UK households as they grapple with the twin challenges of soaring mortgage payments and rental prices.

"This isn't just a problem for new buyers - it's impacting everyone, from first-time homeowners to long-term renters," said Lucian Cook, Savills' head of residential research. "The rapid rise in the cost of keeping a roof over your head is putting immense pressure on family budgets across the country."

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Experts warn that the situation is likely to worsen before it improves, as the Bank of England continues to raise interest rates in an effort to tame persistently high inflation. This, in turn, is driving up mortgage costs for both new borrowers and those coming off fixed-rate deals.

"The true scale of the housing affordability crisis is only now becoming clear," Cook added. "Policymakers will need to take bold action to address this growing problem and provide relief to struggling households."

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With no end in sight to the housing cost crisis, UK consumers are being forced to make tough choices about where to allocate their dwindling budgets. The impact is being felt across the country, as families are forced to cut back on other essential expenses to keep a roof over their heads.