Low mortgages drive down housing costs
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Low-cost mortgage payments have driven down the cost of housing by 6% in the past two years.
Between April 2008 and April 2010 the average annual cost for a household in England and Wales fell by £544 from £9,564 to £9,920.
In the same period the average mortgage repayment has plummeted by 19% or £881 and fell from 5.8% to 3.67%.
Suren Thiru, housing economist at Halifax, says the drop is entirely down to mortgage payments.
She adds: “The drop in housing costs has helped to ease the strain on household’s finances, providing some relief to homeowners during the economic downturn.”
Housing costs in the UK are now equivalent to 27% of gross average full-time earnings, down from 30% in 2008.
London has the highest housing costs at £11,732 a year while the lowest is in Northern Ireland at £7,331.
But as a percentage of gross average full-time wage the capital has the lowest proportion at 24% despite the highest absolute costs.
Results are based on the Office of National Statistics Family Spending Survey which includes council tax, maintenance and repairs, water, electricity, gas, household appliances, tools and equipment, goods and services for routine household maintenance, telephone, toiletries and household insurance.
