3. Soaring Housing Costs
Housing is one of the most painful parts of the cost-of-living crisis. Both mortgages and rents are far higher.
Why Housing Costs Rose
- Mortgage rates increased after the Bank of England raised interest rates.
- Landlords passed costs onto tenants.
- Demand for rental homes exceeds supply.
Real Impact
Average UK rent has climbed from £850 in 2020 to £1,600+ in 2025.