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UK Housing Costs Surge: Interest Payments Skyrocket
16 Mar
Summary
- UK households spent a record £226 billion on housing last year.
- Mortgage interest payments rose 9% to £53.6 billion.
- London leads Britain in housing costs despite lower percentage increase.
UK households incurred a record £226 billion in housing costs last year, marking a significant 41% increase over the past five years. Savills reported that mortgage interest payments specifically escalated by 9% to £53.6 billion in the past year, accounting for more than half of the total rise in housing expenses.
This surge in mortgage interest is particularly affecting borrowers transitioning from fixed-rate deals. The property firm warns that persistent inflation, potentially triggered by geopolitical events, could further elevate these costs. The average mortgage holder now pays £13,000 annually, including capital repayments.
Rental costs saw a more modest increase of 2.75% to £112 billion last year. Private renters' bills have grown by 27% over five years, with £81 billion paid to private landlords annually. London, though experiencing the lowest percentage rise in housing costs at 36% over five years, still represents 23.4% of Britain's total housing expenditure.
