Cost of homeownership hits ten-year low

As average weekly expenditure rises 24% since 2007, the amount of our household outgoings spent on mortgage interest payments has dropped to just 3.77%, down from the 7% peak in 2007/2008.

The cost of running a home has also reduced with water supply at its lowest a proportion of total household expenditure since 2008 (1.61%). The price of electric, gas and other fuels in relation to other outgoings has also hit a nine-year low and although it is currently much higher than most other outgoings at 4.01%, it has reduced to the same level as 2008.

Finally, the cost of stamp duty is at its lowest level in the last 10 years at just 0.04% of the weekly household expenditure having peaked in 2003 at 0.14%.

Conversely, the cost of maintaining a home is now at its highest (1.55%) in six years, having peaked at 1.59% in 2011 before gradually breaking the 1.5% threshold again in 2017. 

The total cost of household goods and services is at a ten year high, now accounting for 7.09% of total household expenditure.

Founder and CEO of Emoov, Russell Quirk, commented: “Despite the woes of the Brexit outcome and a failed snap election, house prices and rent have continued to creep up, remaining the largest financial hurdle for many where renting or homeownership is concerned.

"That said, while they still account for the largest proportion of our household expenditure, the cost has actually reduced when compared to the bigger picture of our total household outgoings.

"Unfortunately, while the proportion of spend in terms of getting a roof over our head may be reducing, the cost of maintaining that roof is highest it has been in a long time.

"For those looking to get onto or further climb the ladder, it also shows the importance of managing costs when trying to save and demonstrates how reducing other weekly outgoings can make all the difference in improving your purchase power.”