Inflation holds at 2% but household costs still at historic highs!

Industry figures hail a period of more stable inflation but high property costs mean many owner occupiers are still suffering as monthly premiums stay high.

Official figures show inflation is holding steady at 2% year-on-year.

The Government’s latest bulletin for June (see main image) reveals that the Consumer Prices Index increased by 2% during the past 12 months and is at the same level as May.

The main drivers for the steadying inflation figure include downward price pressure on footwear and clothing, while hotel and restaurant prices went up correspondingly.

But the CPI does not include housing costs such as council tax and the corresponding CPIH, which does includes these costs, rose by 2.8% during the 12 months to June, pushed up by a 6.8% rise in property costs (but not mortgage payments which are included in the Retial Price Index) during the period.

And housing costs are at a historical high – the last time it hit this figure was back in 1992 when interest rates hikes mortgages rates up to double digits.

Other articles

News

Chancellor says Stamp Duty hike on buy-to-let ‘justified’

Rachel Reeves increases Stamp Duty on investment property from 3% to 5% from tomorrow in the Budget. Stamp Duty on buy-to-let properties and second homes ...
Read More →
News

UK interest rates will drop to 2.75%, Goldman Sachs predicts

The Bank of England could move more aggressively to lower borrowing costs; good news for mortgage borrowers. The Bank will cut interest rates from the ...
Read More →
News

Hopes of a double interest rate cut before Christmas boosted as inflation falls to 1.7%

UK inflation fell to 1.7% in the year to September, the lowest rate since April 2021. Lower airfares and petrol prices were the main driver ...
Read More →
News

Major Mortgage Lenders Slash Rates as Speculation Grows Over Bank of England Base Rate Cut

In a move that signals growing confidence in a potential Bank of England base rate reduction, major mortgage lenders are set to cut home loan ...
Read More →
News

Top 5 Renters’ Rights myths dispelled

The Renters Rights Bill represents a significant overhaul of the way that the private rented sector functions. Following its introduction to parliament on 11 September ...
Read More →
News

Why It’s Important to Use a Letting Agent to Manage Your Property

With property regulations constantly evolving, it’s never been more important to use a professional letting agent to let and manage your property. Staying compliant with ...
Read More →