The UK’s private rented sector (PRS) has experienced its largest decline this century, according to Savills.
Its value collapsed by £48 billion in 2025 alone.
Meanwhile, the value of owner occupied housing stock rose by +£185 billion in 2025 as the number of mortgage free owners continued to rise.
Over the past three years
Savills’ analysis, which provides a total value of the UK’s housing stock, reveals that the PRS is the only housing sector to have contracted over the past three years.
It decreased by 5.1%, despite the UK housing sector growing by 3.8% overall.
The PRS has now contracted for three years in a row, says Savills, meaning that the value of homes has fallen by a total of £79 billion since 2022, as increased house prices have failed to offset the loss of stock.
Value of UK housing by Tenure
| £bn | 2025 | 2022 | Change | % change |
| Mortgage-free owner occupied | 3,455 | 3,316 | +139 | +4.2% |
| Owner occupied subject to a mortgage | 3,132 | 2,935 | +197 | +6.7% |
| PRS* | 1,477 | 1,556 | -79 | -5.1% |
| Other | 672 | 635 | +37 | +5.8% |
| Privately Owned UK Housing | 8,735 | 8,441 | 293 | +3.5% |
| Social* | 443 | 400 | +43 | +10.6% |
| All UK Housing | 9,177 | 8,842 | +336 | +3.8% |
Source: Savills Research
* valued subject to the occupational rights of tenants
Instead, growth has been driven by owner-occupied housing.
Over the past three years, the value of mortgaged owner-occupied homes has risen by £197 billion – outpacing the £139 billion increase in the value of mortgage-free owner-occupied properties.
“Over the past 25 years, we’ve grown accustomed to a story of the private rented sector expanding at the expense of people’s ability to get onto the housing ladder” comments Lucian Cook, head of residential research at Savills.
He continues: “But while deep-seated housing challenges remain, lighter regulation in the mortgage market and tighter oversight of the private rented sector are gradually beginning to shift that narrative,”
“Changes in tenancy legislation, higher operating costs and increased mortgage rates have prompted many private landlords to reassess their portfolios.
“Larger landlords, better equipped to absorb added costs and requirements, have taken on some of this stock, contributing to a more professionalised PRS. But others have been sold to owner-occupiers, reducing the sector’s overall size.”
Value of privately owned homes bolstered by mortgage debt
The increase in the value of privately owned housing since 2022 has largely been supported by a 4.7% increase in the levels of outstanding mortgage debt held by homeowners.
“With more former PRS stock available to buy, first-time buyer activity has been relatively strong in the context of post credit crunch levels. This has been supported by the less stringent application of mortgage regulations, falling mortgage rates and rising wages” comments Cook.
“But there are still significant barriers to owning a home, and part of the growth in mortgaged home ownership is down to people taking longer to pay off their mortgage debt.
“The reduction in homes available to rent will also continue to push up rents, posing challenges to those who are struggling to save for a deposit.”
