Housing costs soar as food bills drop

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by Kay Murchie

Latest figures show that housing-related expenses including mortgage, rent and council tax now make up for almost one pound in five, compared to less than one pound in ten in 1957.

According to the Office of National Statistics (ONS), mortgage interest payments or rent accounted for 19% of spending in 2006, up from 9% in 1957,

Just 10 years ago, food and non-alcoholic drinks accounted for 18%, just ahead of housing on 16%.

The changes reflect the dramatic rise of property in real terms since the Fifties and how intensive farming and supermarkets have hugely reduced the price of food.

The figures established that those in the capital have the highest property responsibility by dedicating an average of £174 a week to household mortgages compared to the national figure of £132.

The detailed breakdown, known as the Expenditure and Food Survey, collates information on household income and spending on a range of goods and services.

This is then analysed according to an internationally-agreed system known as the Classification of Individual Consumption by Purpose (CIOCOP).

The data feeds into calculations for the Retail Price Index (RPI), and is widely used by government departments, business and academics.

Back in 1957, practically 50% of all income went on the three basics of food and drink (33%), clothes (10%) and heating and light (6%).

In spite of the hefty rises in energy prices, the survey established that spending on fuel and power halved from 6% of spending in 1957 to just 3% in 2006. Furthermore, motoring and travel costs have doubled from 8% of spending in 1957 to 16% in 2006.

Spending on alcoholic drinks makes up for the same proportion of spending as it did 50 years ago at 3%. However, the biggest single ‘luxury’ in the mid-Fifties was smoking, with almost 6% of all income going on cigarettes and tobacco. Now only around 1% of spending is on cigarettes.