Utility bills push up housing costs
Monday, 16 May 2011 12:54 PM
Soaring gas and electricity prices and maintenance charges have increased the cost of owning and running a home to its highest level for three years, according to a survey by the Halifax.
Costs totalled £9,083 in March 2010, a 1.4 per cent (£127) increase on March 2010, said the bank. Electricity and gas charges have gone up £68 and maintenance costs £45 over the last 12 months.
However, total costs are still 3.5 per cent (£328) lower than the peak seen in March 2008 thanks to record low interest rates and much lower mortgage payments. The average mortgage rate paid by existing borrowers has fallen from 5.8 per cent to 3.49 per cent over the last three years, and the average repayment is down by 21 per cent (£956).
Mortgage payments now account for 39 per cent of the cost of owning and running a home. Electricity and gas bills make up 16 per cent, council tax and domestic rates 14 per cent and maintenance eight per cent.
Excluding mortgages, housing-related expenditure increased by 13 per cent between March 2008 and March 2011, more than the ten per cent rise in inflation. Housing costs for renters rose by ten per cent over the same period.
Suren Thiru, housing economist at the Halifax, said: "Household finances remain under pressure, with the significant drop in mortgage payments since 2008 mostly offset by increases in other household bills.
"Rising utility bills have been a clear driver behind this, along with increases in maintenance costs and council tax charges. The current strain on household finances is particularly concerning at a time when earnings growth remains weak."
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