Household bills hit 3 year high

Graham_Devon

Even with interest rates as low as they are, which initially reduced the cost of running a home, inflation is now playing catch up.

The cost of owning and running a home in the UK has hit a three-year high of just over £9,000 a year, according to research by Halifax.
Despite rock-bottom interest rates, average annual costs for homeowners rose £127 (1.4%) from £8,956 in March 2010 to £9,083 in March 2011, driven by higher gas and electricity bills.
The figures follow worrying inflation data this week, with prices rising at their fastest rate for two and a half years, owing to soaring petrol costs and higher duty on alcohol and tobacco.
Halifax said that in nine out of 11 household expenditure categories, costs had risen. Electricity and gas bills, which rose by an average of £67, and maintenance and repair costs, up by £45, were the biggest contributors to the overall rise in housing expenses.

While interest rates look to stay low for a while yet, probably not even moving from 0.5% before 2012, there is, in my mind, a bubbling effect. All other costs are rising, and at some point, interest rates will too. This will cause a large jump in the cost of running a home.

chucky

so let me get this right...

Despite rock-bottom interest rates, average annual costs for homeowners rose £127 (1.4%) from £8,956 in March 2010 to £9,083 in March 2011

that's 1.4% increase in costs in one year

the 3 year increase is 3.5%, just over 1% per year.

that's quite a bit less than inflation.

happy days.

DervProf

You have to eat food, while running a home.

Well, you don't have to, but it's easier if you do.

Not forgetting transport costs.

System

Some of the costs seem really high, but the average yearly mortgage seems way too small.

Graham_Devon

Joeskeppi wrote: »

Some of the costs seem really high, but the average yearly mortgage seems way too small.

I thought so too. Household insurances certainly.

But then I thought household appliances was majorly low!

PasturesNew

If things are always going up, doesn't that mean every month they're at a 3 year high?

DervProf

Graham_Devon wrote: »

I thought so too. Household insurances certainly.

But then I thought household appliances was majorly low!

Graham, some of us don't watch 14" portable TVs.

Actually, my reply should have been.......


Graham, why would you think that the expenditure on household appliances was majorly low, when your expenditure over the past 3 years had been £8.99 on a set top aerial for your 14" portable ?

thriftychick

Mortgage payments £3,535 a year, in my dreams!

Kennyboy66

chucky wrote: »

so let me get this right...

that's 1.4% increase in costs in one year

the 3 year increase is 3.5%, just over 1% per year.

that's quite a bit less than inflation.

happy days.

Even better is that fact that you missed the fact that 3.5% had a minus in front of it.

Happy days indeed.

I'd also love to know why increasing interest rates would make any of the following cheaper

Council Tax
Water
Maint & repairs
and even fuels costs.

chucky

Kennyboy66 wrote: »

Even better is that fact that you missed the fact that 3.5% had a minus in front of it.

Happy days indeed.

:rotfl:so it did.

that means home owners are better off now than 3 years ago.

happy days

Kennyboy66 wrote: »

I'd also love to know why increasing interest rates would make any of the following cheaper

Council Tax
Water
Maint & repairs
and even fuels costs.

i keep on asking this to the usual suspects who keep on starting threads about increasing the base rate. i've been told once it would be a favourable exchange rate. they get a bit stuck when i ask what happens if that other country/central bank increases their rate.

Butterfly_Brain

We pay over £1,5000 pa for a band c house in Bedfordshire plus £500 pa water and sewerage charges so we are worse off than most of the country