We are currently experiencing technical difficulties with our telephone system.
We apologise for any inconvenience and are working to resolve this as soon as possible.
Secured Loans > How does current cost of living stack up in the UK?

How does current cost of living stack up in the UK?

13th February 2017 | Published by Christopher Scott

This week, the Bank of England made its annual growth forecast for the year ahead, stating that we can expect 2% economic growth over the course of 2017 – a figure that’s bang in line with the government’s inflation target.

While that’s all well and good, what does it actually mean for our standard cost of living, and what has been happening with market prices over the past 12 months?

The key thing to weigh this rise inflation against is the change in average living wage over the same time period.  Now, the average wage is just over £28,000, up from £27,600 in 2015, which indicates an increase of approximately 1.5%.

source:https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2016provisionalresults

This would lead us to believe that people are 0.5% worse off now than they were one year ago, however it really depends what household factors affect each individual household. Let’s take a look at some key areas of the consumer market to see how specific prices are faring in general.

Housing

According to the Land Registry, the average UK house price at the end of November 2016 was £217,928 – which shows an increase of approximately 7% in just under a year.  The average monthly rent is up too, from £819 to £839 over the same period of time.

Experts say that the housing market has already started to indicate signs of recovery after an initial period of uncertainty and weakness following the vote for Brexit.

Energy

The cheapest gas and electricity price rate in January 2016 was £765, according to MoneySavingExpert.com. However, the cheapest price in January 2017 was up by around £70, jumping to £834 overall.

This rise has largely come over the past three months, although it was on the horizon for some months prior to this. Raw energy is generally priced in US currency, which makes the pound’s collapse against the dollar particularly significant for large energy providers, and which explains why we’re seeing such a hike in price over a rather brief period of time.

Food

Perhaps a little surprisingly, food prices were in fact down by 1.7% over the previous year, which means the average family is saving about £2.50 on their weekly shop. It may not seem like much, but for a product applicable to us… every little helps, right?

source: http://www.retailtimes.co.uk/brexit-not-impacted-shop-prices-yet-latest-brc-nielsen-index-shows/

Category: Homepage, Money
This post was written by Christopher Scott
Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk
Representative 28.96% APRC (Variable) - For a typical loan of £20,950 over 85 months with a variable interest rate of 23.00% per annum, your monthly repayments would be £537.44. Including a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00, the total amount repayable is £45,682.15. Annual Interest Rates ranging from 11.7% to 46.5% (variable). Maximum 50.00% APRC. The loan must be paid back by your 70th birthday. Read more.

Think carefully before securing debts against your home your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
© 2024 Evolution Money | Cookies | Terms & Conditions | Fair Processing Notice
Start Here
Please wait

Please wait

Don't leave just yet!

Evolution Money are a multi Award Winning UK finance company with thousands of happy customers!

Award Winning

Our friendly loan advisors can let you know if you're eligible for a loan without affecting your credit score. Why not give us a call today!

Freephone 0800 144 8188

Back to Evolution