Council tax bills push up housing costs

Council tax bills have increased the cost of the upkeep of a house by four times the rate of inflation, according to a new report.

03:55 13 August 2005

Council tax bills have increased the cost of the upkeep of a house by four times the rate of inflation, according to a new report.

Drawing on data from the Office for National Statistics, the Halifax said the average cost of running a home rose by five per cent in the year to March 2004.

But during the same period, CPI inflation ran at just 1.1 per cent, the mortgage lender added.

Rising council tax accounted for more than a third of the total increase in household costs, as the average bill surged 11 per cent to 921 - representing a sixth of the total cost of running a home.

Nearly 6,000 a year was spent on housing costs, which account for almost a quarter of total household spending.

Repairs to homes, the cost of household appliances, heating costs and maintenance bills all increased during the period.

Mortgage interest costs made up the largest single cost of owning and running a household, at about a third on average.

In London, total housing costs stood at 7,691 a year.

Caroline Spelman, Tory local government spokesman, attacked the government for burdening homeowners with numerous stealth taxes.

She argued that council tax bills have soared by 76 per cent since Labour came to power.