As more and more people in the UK continue to suffer financially it has been revealed that the cost of running a home in the country has fallen by 17% over the last 12 months. A Halifax report has suggested the cost of running the average home in the UK fell from £8800 to £7300 between 2008 and 2009. This £1500 reduction is significant although unfortunately it does appear to be a different story underneath the surface.

The vast majority of the reduction is accounted for by a significant fall in mortgage payments over the last 12 months as UK base rates have fallen from 5% to 0.5%. The wider picture shows that the cost of Gas and Electric has risen by 13% on average while property prices have fallen by 16% over the last 12 months. While there is no doubt that the potential £1500 saving will come in useful for many people across the UK it will be very different as and when mortgage interest rates start to rise again.

If nothing else this latest report from the Halifax shows how dominant the mortgage sector is in the wider UK economy. Whether the influence of the mortgage industry in the UK should and could be reduced is very much open to debate.

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