Fuel Bills Push Up the Cost of Living

Research from Halifax suggests that the rising cost of utilities has resulted in household bills reaching their highest level since 2008. Despite falling mortgage costs and low interest rates, average housing costs have rose from £8,956 to £9,083 (1.4%) in the 12 months from March 2010. Total household costs in 2008 were slightly higher than today, at £9412.

Gas and electricity costs have been named as the main culprits for overall increases, as we have seen average growth in these costs of £237, or 19%, since 2008. Utilities were shown to have increased to 16% of total housing costs. Other factors shown to be responsible for the rise in costs include maintenance expenditure and a greater amount spent on household appliances.

Regionally the largest annual increase was in Northern Ireland (2.3%), whilst the smallest was in London (0.5%).

Suren Thiru, housing economist at Halifax, said that "household finances remain under pressure with the significant drop in mortgage payments since 2008 mostly offset by increases in other household bills.” He particularly blamed energy costs for the pressure, claiming that “rising utility bills have been a clear driver behind this, along with increases in maintenance costs and council tax charges. The current strain on household finances is particularly concerning at a time when earnings growth remains weak."