UK housing costs – including rents – hit a record high in 2024, hitting £217 billion for the first time, according to Savills. 

The analysis of private and social rents plus owner-occupier mortgage costs reveals a £19.8 billion increase in total housing costs in 2024 (10%). 

Total costs are £8.6 billion higher than the previous peak in 2016, even on an inflation-adjusted basis.

It means that the nation’s total housing costs have risen by a total of £41.2 billion in the last two years, accounting for 60% of the total increase in the past 10 years

“Mortgage rates eased last year, but the higher costs incurred by households reflect the number who had come to the end of a fixed-rate-deal or moved home. While mortgage rates are projected to fall further this year, there are still a significant number of households that are due to come to the end of five-year fixed-rate deals later this year and will be facing an increase in their household bill” comments Lucian Cook, head of residential research at Savills.

In total, the bill for 8.5 million mortgaged owner-occupiers reached £110 billion in 2024. This means that the average mortgaged homeowner is paying £12,754 per year – £2,829 more than in 2022. While 9.6 million unmortgaged homeowners remain unaffected.

An increase in costs has been primarily driven by mortgage interest repayments, which have increased by 32% over the past two years. 

In comparison, total costs for renters were £81 billion in 2024. This means that the annual bill for the average household renting has reached £14,458, after increasing by £2,195 over the past two years.

“While rental growth slowed in 2024, a significant uptick in the total rental bill reflects the time for historical growth to feed into the amount people pay. Across the country rents have hit an affordability ceiling, but tenants are still left spending a larger proportion of their income on rent than at any point in the last 20 years,” continues Cook.

London was the region of the UK which saw the biggest increase (27% since 2022) in total housing costs in 2024, followed by the East Midlands and West Midlands (25% each). 

Overall, Londoners incurred a quarter (25%) of national housing costs last year alone. Here, tenants have borne the brunt of rental growth and are typically the most exposed to higher mortgage costs.

The North East saw the smallest uplift – increasing by 17% over the past two years.