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Interest payments driving homeowner costs up
The inflated price of mortgage interest payments has resulted in homeowners seeing higher household cost prices than renters, according to figures from the Office for National Statistics.
Senior Journalist, covering the Credit Strategy and Turnaround, Restructuring & Insolvency News brands.
Senior Journalist, covering the Credit Strategy and Turnaround, Restructuring & Insolvency News brands.
Overall, the UK’s household costs rose by 8.2% in the 12 months to September 2023, little change from the 8.3% rises in July and August, and down from a peak of 12.6% in October 2022.
For owner occupiers still paying for their own house, however, experienced a rate 1.1% higher than that of the overall figure at 9.3%. Primarily driven by mortgage interest payments, this was also 2.1% higher than the rate experienced by private renters.
Meanwhile, non-retired households experienced a higher annual inflation rate than retired households – 8.3% compared with 7.8% – while the inflation rate for was three percent higher for households with children when compared to those without – 8.4% to 8.1%.
The lowest annual inflation rate was for private renters, whose inflation rate was the lowest it had seen in October 2022 at its peak at 10.1%.
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