Halifax's annual review has found that the cost of owning and running a house rose by 5% in 2003/4. Rising council tax bill accounted for a third of the rise. Annual housing costs, at £5,948 made up 23% of the total household spending by owner occupiers, and was a third higher than spending on basic household items such as food and drink, clothing, education and healthcare. The research shows a wide divide in expenditure across the country. Londoners pay the most, at £7,691 per year, which is 77% higher than in the North East, the cheapest area, at £4,358.
Our view
'Faster than inflation' increases is due to classic mis-management by local authorities. We all know what goes on ........ departments having not spent their budgets then just waste it so that they get at least the same budget next year!