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Factor life insurance into cost of running your house

Date: Mon, 15 Aug 2005

Homeowners are being urged to ensure they still factor in life insurance as the cost of running a household continues to increase.

Figures by Halifax show that the cost of owning and running a house increased by five per cent in 2003/04 – four times above the rate of inflation.

Council tax costs accounted for 30 per cent of the increase, with expenditure on council tax rising over the year by 11 per cent, meaning the average household paid £921.

"The cost of owning and running a home has increased at a much faster rate than inflation," said Tim Crawford, economist at Halifax.

"Council tax continues to be a key driver of rising housing costs, while in the past year higher mortgage servicing costs have also been important."

The research also highlighted the strong regional differences in housing costs, with London reporting the highest at £7,691 per year, whilst households in the North East spent an average of just £4,358 per year.

However, homeowners throughout the UK are being urged to make sure they have sufficient life insurance to ensure that their home will be protected if the worst should happen.


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