Household Bills Rise at Four Times Rate of Inflation

15 Aug 2005

Household bills rose by 5% over 2003/4 according to the Office of National Statistics; putting the increases at 4 times the rate of inflation which was just 1.1% for the same year.

The cost of household bills stood at £5,948 on average for that year; council tax alone soared by 11% on average and Halifax group economist Tim Crawford said; "The cost of owning and running a home has increased much faster than the rate of inflation."

Mr Crawford explained; "Council tax continues to be a key driver of rising housing costs, while in the past year higher mortgage servicing costs have also been important.”

The Bank of England has increased the base rate and in turn the cost of mortgage repayments for home owners; mortgages became the single biggest expense for homeowners in 2003/4, accounting for 30% of household expenditure.

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