However, Savills data shows that the value of owner occupied housing stock rose by £185bn in 2025 as the number of mortgage free owners continued to rise, while levels of mortgaged home ownership benefited from increased first-time buyer activity.

It also found that the PRS is the only housing sector to have contracted over the past three years, decreasing by 5.1%, despite the UK housing sector growing by 3.8% overall, representing £336bn.

This also shows that the value of homes has fallen by a total of £79bn since 2022, as increased house prices have failed to offset the loss of stock.

Savills says growth has been driven by owner-occupied housing.

Over the past three years, the value of mortgaged owner-occupied homes has risen by £197bn, outpacing the £139bn increase in the value of mortgage-free owner-occupied properties.

Meanwhile, 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.

Savills head of residential research Lucian Cook says: “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.”

“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.”

Cook adds: “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.”

“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.”