UK households spent a record £226 billion on housing last year, with mortgage borrowers on fixed-rate deals hit hardest by rising payments. Property group Savills said total housing costs have risen by £66 billion over the past five years, an increase of 41%. The pace of growth slowed in 2025, with spending rising by nearly £8 billion, or 3.6%, compared with £22 billion in 2023 and £19 billion in 2024. However, mortgage interest payments grew sharply, up 9% to £53.6 billion, accounting for more than half of the overall rise. Savills warned this trend could continue if economic instability from US and Israeli strikes on Iran triggers persistent inflation. Lucian Cook, head of residential research at Savills, said higher interest rates on fixed mortgages have long-lasting effects on household budgets and spending. He added that the outlook for 2026 is now uncertain due to the risk of another inflation wave. Last week, the average rate for a two-year fixed mortgage surpassed 5%, up from 4.84% at the end of February. Lenders have been adjusting rates and removing deals in response. Including capital repayments, the total cost for 8.8 million mortgage holders reached £114 billion in 2025, meaning the average borrower paid £13,000 a year. In the rental market, costs rose more slowly, increasing 2.75% to £112 billion last year. Of the total housing spend, £81 billion went to private landlords, averaging £15,000 per household, while private rental bills grew 27% over five years. Regionally, London recorded the smallest increase in housing costs, 36% over five years, compared with 49% in the north-west and 45% in both the north-east and eastern England. Still, London accounts for the largest share of Britain’s housing costs, at 23.4% of the total. According to property website Rightmove, average seller asking prices rose £3,023 in March to £371,042, a typical seasonal increase of 0.8%. The number of homes for sale remains at an 11-year high, limiting stronger price growth. Rightmove described the market as “steady,” with the number of sales only 2% behind last year and 5% above 2024, despite uncertainty from the Iran conflict. The data shows that UK households are paying significantly more to keep a roof over their heads, driven mainly by mortgage interest rises, with rental costs also climbing. Experts warn that housing affordability will remain under pressure if global and domestic economic instability continues.