Total expenditure on housing has risen by 119% over the past decade from around £106.1bn in 1993 to almost £232bn in 2003, research by Mintel reveals.
Mintel's British Lifestyles report shows that almost half of what the British spend goes on housing and finance – a total of around £400bn. This is up from 39% of expenditure 10 years ago.
The report also shows that the total number of residential properties, both rented and owner-occupied, has grown at a steady rate of between 0.7% and 0.9% annually over the past decade but this rose to 1.2% in 2003.
The number of properties totalled just under 26 million in 2003, representing an 8% growth since 1993.
The research company adds that the average house in 2003 was worth two and a half times its value in 1993 – rising 139% to £153,567 from £64,300.
Consumers spent £12.3bn on financial services in 2003, a rise of 4% and an increase of 8% in real terms since 1998.
Peter Ayton, chief statistician at Mintel, says: “Even though the market may now be past its peak we see no reason to believe that there is going to be a crash in housing.”
The report also reveals that consumers spent £12.3bn on financial services in 2003, a rise of 4% since 1998. Mintel says people are becoming more prepared to pay for advice from brokers and IFAs before making important financial decisions. It argues that the complexity of the financial services marketplace often dictates that the advice of a specialist is required.