Tenants’ rent bill hits £81bn – Savills

Private renters paid £81 billion to landlords last year, helping to push the country’s overall housing bill to a record £226 billion.

Research from property firm Savills shows households spent £226.3 billion on mortgages and rent in 2025.

That’s an increase of £8 billion compared with the previous year.

Over five years, the total has risen by £66 billion.

Renters accounted for £112 billion of that spending with £81.1 billion going to private landlords, while £30.9 billion was paid in social rent.

Housing costs slow

The firm’s head of residential research, Lucian Cook, said: “The pace of growth in the nation’s housing costs has slowed substantially compared with 2023 and 2024.

“In 2025, the burden of higher mortgage costs has been felt mainly by households coming off longer term fixed rate deals.

“At the same time, we’ve seen a return to much more normal levels of rental growth.”

He added: “Until recently, 2026 looked set to offer some respite, but that is now less certain given the prospect of another wave of inflation, which mortgage markets are typically quick to price in.”

Annual rent bill

Savills says the figures place the average annual PRS rent at £15,000 per household.

Over the last five years, the total amount paid by private renters has increased by £17.3 billion, a rise of 27%.

Combined housing costs across all households increased by £7.9 billion in the past year.

That follows larger annual rises of £22 billion in 2023 and £19 billion in 2024.

London pays the most

Regional data shows London continues to pay the largest share of housing costs at £53 billion in 2025.

That’s equivalent to 23.4% of the national total.

It’s also the combined total of Scotland, North East England, North West England and Yorkshire and the Humber.

Over the past five years, housing costs in London increased by £13.97 billion, representing a 36% rise.

Savills says that no other region recorded a smaller percentage increase.

London also accounts for just under a third of the UK’s total private rent payments.

However, Northern Ireland recorded the largest five-year increase in housing costs at 55%.

The North West, East Midlands and East of England also saw rises exceeding 45% over the same period.