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Home loans cost more

8 June 2005

On average mortgage holders pay £2,652 more a year than people who rent their property.

That is according to new figures from the Office for National Statistics which calculated the average rents paid by tenants and average mortgages paid by mortgage holders in the UK.

The ONS calculated that average net rent across the United Kingdom was £46 a week, while the average weekly cost of a mortgage was £97.

However, it discovered large regional variations.

In London the cost of putting a roof over your head was significantly higher, with tenants paying 75 per cent more than the national average at £80 a week and mortgage holders paying £134 per week.

Residents of the South East also paid a premium for their homes, with an average rent of £68 a week and higher than average mortgage payments.

Household in the North East the least for their properties, at £21 per week in rent (54 per cent lower than the UK average), and £58 a week in mortgage costs (41 per cent lower than the national average).

Along with mortgage and rent costs, the ONS discovered that British households also spend £2,236 a year on other housing expenses.

These include and expenditure of £23 a week on housing alterations and improvements and £20 a week on local taxes and service charges.

Moving house is another housing expense, costing UK residents an average of £104 a year.