Doom and gloom

Despite record low interest rates, falling by more than one-fifth since in 2008 the cost of owning and running a home in the UK has risen over the last year.

Bank of Scotland research found that soaring gas, electricity and main-tenance costs were the main causes of the rise. It showed that the average annual cost associated with owning and running a home rose by 1.4%, or £116, from £8525 in March 2010 to £8641 in March 2011. Utility costs were up by £102 on average and maintenance costs by £33.

Bank of Scotland housing economist Suren Thiru said: “Household finances remain under pressure with the significant drop in mortgage payments since 2008 mostly offset by increases in other household bills. Rising utility bills have been a clear driver behind this, along with increases in maintenance costs. The current strain on household finances is particularly concerning at a time when earnings growth remains weak.”

Another study revealed over-50s are suffering a drop in their quality of life as their incomes are squeezed by low interest rates and high inflation. Research by Saga found that around 56% of older people cite the rising cost of living as their biggest concern, more than double the 27% who are most worried about their health.