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UK Housing Costs Soar: £226 Billion Spent in 2025

3/17/2026

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Story summary
  • UK households spent a record £226 billion on housing in 2025, with mortgage payments rising 9% to £53.6 billion.
  • The average two-year fixed-rate mortgage surpassed 5%, affecting 8.8 million mortgage holders who pay an average of £13,000 annually.
  • Rental costs rose more slowly, totaling £112 billion.
  • New seller asking prices increased by £3,023 in March, indicating a steady market with homes for sale at an 11-year high.