Mortgages move to the top of Brits' spending agenda

01-Aug-2005

Household spending on mortgages is now greater than ever as a proportion of total expenditure, new research has revealed.

Click here for advice on first time buyer mortgages or to find out how much you can borrow and how much it will cost you, from the UK’s leading High Street Brokers, Bradford and Bingley

Costs associated with the house have shot up in recent years as Britons become increasingly concerned with owning and developing their own property – with more and more young Britons keen to get a foothold on the property ladder.

Financial firm Mint commissioned the research, which encompasses the last 40 years and which shows the increasing significance of the home in household budgets.

Mortgage payments or rent have now moved up from the fifth most important item in household spending in 1964 to the top of the pile.

In total £96.9 billion is spent on housing in one form or another each year, outstripping the cost of food, going out and tobacco.

Click here to find out about the finances of borrowing with friends, i.e. to find out how much you can borrow together and what it will cost you.

A Mint spokesman told This is Money that the survey indicated a "huge cultural shift in the way we spend our money".

While the changes emphasise that spending on households has become more important, the cost of living also highlights some of the concerns about the provision of affordable housing.

First time buyers seeking to get on the property ladder are particularly threatened by rising costs, although the survey does suggest a shift in consumer priorities rather than just an increase in expenditure.

2008: May | Apr | Mar | Feb | Jan

2007: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2006: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2005: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar