Housing Costs Fall

The cost of owning and running a house is on the fall, declining by 6% over the last two years.

Halifax have compiled their regular review into housing costs – the cost of owning and running a home.

The review takes into account costs such as mortage payments (interest and capital), council tax, spending on maintenance and repair, water supply, electricity, gas and other fuels, household appliances, tools and equipment, goods and services for routine household maintenance, telephone accounts, toiletries and household insurance.

From all these costs the review found that the cost of owning and running a home in the UK has fallen by 6% over the past 2 years.

In real terms, after allowing for retail price inflation, the cost has fallen by 9%. That said housing costs still equate to 27% of gross average full time earnings.

The biggest impact on the costs has been a reduction in mortgage payments, with the average mortgage interest rate paid down 2.13% from 5.8% to 3.67% from April 2008 to April 2010.

Mortgage payments account for the largest proportion of total housing expenses at 41%. Second highest are electricity and gas charges, followed by council tax and domestic rate charges.

Electricity and gas bills’ proportion of housing costs increased from 13% to 15% as a result of the 10% rise in such costs over the period – so do you know how to compare gas and electricity prices to make sure you are getting the best deal?