The cost of owning and running a home rose by 7 per cent in 2004/5 – more than three times the rate of inflation, says the report by Halifax. And for the first year since the survey began, council tax and utility bills are estimated to represent the single biggest component of total costs in 2005/06.
Higher mortgage interest payments contributed the most to the increase in the cost of owning and running a house in 2004/05, but mortgage costs are still relatively low and recent increased in fuel and council tax bills will more than offset lower mortgage costs.
The costs of owning and running a home vary widely across the country, says the report. London housing costs are the highest at £8,133 per year. Costs in the capital are 63 per cent above the annual housing costs in the North East, which is the cheapest region at £4,990 per year. The capitals costs are 28 per cent above the national average.
There is less variation once differences in income are taken into account. The east of England has the highest housing costs relative to household income, at 18.6 per cent of gross disposable income. Costs remain lowest in the North East at 16 per cent of gross disposable income.
