View more on these topics

Running costs increase by 5%

The cost of owning and running a house rose by 5 per cent in 2003/04, according to Halifax’s third annual review.

Rising council tax bills accounted for a third of the rise.

Annual housing costs, at 5,948, made up 23 per cent of total household spending by owner-occupiers and was a third higher than household spending on basic items such as food and drink, clothing, education and healthcare.

Halifax says council tax will be one of the main factors driving increased housing costs in 2004/05 and 2005/06. It estimates costs rose by 6 per cent in 2004/05 to 6,303, driven by higher mortgage servicing costs and council tax. It forecasts a 2 per cent rise to 6,406 in 2005/06 with a likely fall in mortgage servicing costs partially offsetting rising utility and council tax bills.

The research, based on ONS statistics, also shows wide disparity across the country. Londoners pay the most at 7,691 a year, 77 per cent higher than in the North-east, the cheapest area at 4,358. Costs in the South-west are the highest relative to gross disposable income, at 16 per cent.

Halifax group economist Tim Crawford says: “Costs have increased at a much faster rate than inflation. Council tax continues to be a key driver while in the past year higher mortgage servicing costs have also been important.”

Recommended

Standard offers cash calculator

Standard Life has added a tax free lump sum calculator to its adviserzone website as part of its countdown to simplification campaign.The tool will enable advisers to calculate whether their clients are entitled to tax free cash above 25 per cent of their pension fund and plan ahead for A day accordingly.Standard John Lawson marketing […]

Nothing ventured

A long-time client once had a great opportunity to get a new business off the ground through selling part of the firm to a venture capital outfit. Like most relationships, it started well but soon there were problems as he found himself with competition from within.

Tales of the riverbank

A day out on the Thames with Platform means Pimms all day long, with food and sun a’ plenty. But once our vessel passed the Thames Barrier, the tranquility was replaced with a hum of concern as the shoreline took on the look of an industrial wasteland forgotten by time. The apocalyptic scene gave cause […]

Rayner Spencer Mills: Why we rate the Artemis Global Growth Fund

Ken Rayner and Graham O’Neill from RSM explain why they rate the fund, its investment process and how it can be used in a portfolio. The Artemis Global Growth Fund became a RSM ‘rated’ fund earlier this year. In this video, Ken Rayner and Graham O’Neill explain the fund’s investment approach, why they rate it, […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment