Homes Take A Fifth Of Our Income

The cost of living in a home in Britain is higher now than at any time in the last 50 years. Mortgage payments, rents and council taxes are now taking £1 out of every £5 spent.

A study into the changing face of Britain since 1957 by the Office of National Statistics revealed the changes in Britain’s spending in half a century.  Whereas in 1957 spending tended to be on cigarettes, beer and rent, it is now more on wine rather than beer, and housing, with less spent on smoking.

Another modern spending trait is for home improvements and soft furnishings, and in 2007 the country spent £750 in every week on things for the home: sofas, carpets, garden furniture and other decorative goods.

Spending on leisure has also soared, but spending on food has dropped. Despite recent concerns over rising food prices, they have actually plummeted in real terms since 1957. Efficient farming and factory food production methods have enabled supermarkets to sell food at prices comparatively much lower than 50 years ago.

In 1957 leisure accounted for only 9% of our spending, but now it has increased to 19%, with people spending more on entertainment and going out. It was a period when rationing had only just finished and people were still living frugally.

Another area of large spending increase has been in motoring. In 1957 8% of people’s budget went on motoring; in 2007 it was 16%. This is inevitable with more car use, and people travelling further to get to work.

Spending on smoking has decreased. In 1957 it was 6.1% (87p), equating to £83.88 today. In 2007 average spending on smoking was only £4.60 a week (1%).

Spending on housing has risen from 8.1% of income (and an actual weekly figure of £1.20) to 18.9% of income (and an actual weekly figure of £85.40). Actual weekly spending has gone up from £14.30 in 1957 to £456 in 2007