Housing costs hit a record £217 billion in 2024

The UK’s housing costs surged to an unprecedented £217 billion in 2024, marking a £19.8 billion rise from the previous year, a 10% jump.

According to property firm Savills, this figure eclipses the previous high of 2016 by £8.6 billion, even when adjusted for inflation.

That’s placing a huge financial strain on Brits, it warns.

However, for the nation’s renters, the annual burden has climbed to £81 billion, with the typical private tenant now spending £14,458 yearly — that’s £2,195 more than in 2022.

Rent growth slowed in 2024

Lucian Cook, Savills’ head of residential research, said: “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.”

Savills says that tenants in the capital have seen the sharpest rent rises, compounded by exposure to heftier mortgage expenses.

Over the past decade, 60% of the £41.2 billion national increase in housing costs has occurred in just the last two years.

Mortgage interest repayments spike

Meanwhile, the 8.5 million homeowners with mortgages face a collective £110 billion tab – equating to £12,754 per household, a steep £2,829 increase over two years.

Unmortgaged homeowners, which number around 9.6 million, remain untouched by these escalating figures.

The driving force behind this spike is a 32% leap in mortgage interest repayments since 2022.

Londoners, bearing a quarter of the nation’s housing costs at £54 billion, have been hit hardest, with a 27% rise since 2022.

The East Midlands and West Midlands follow, each seeing a 25% upsurge.

In contrast, the North East has seen the smallest climb, up 17% over the same period.