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Third of mortgage holders cut back on food and essentials as living costs surge – ONS

  • 05/08/2022
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Third of mortgage holders cut back on food and essentials as living costs surge – ONS
A third of people with a mortgage have reduced their spending on food and essentials due to the rising cost of living, government figures have shown.

Data from the Office for National Statistics (ONS) on how people were coping with increased costs showed the proportion of people cutting back on food and essentials rose to 46 per cent for renters. 

Some 42 per cent of those in shared ownership schemes, paying part mortgage part rent, had reduced their spend on essentials. 

The ONS said this was likely because those in rented housing tended to see cost increases in other areas. Although renters are no more likely than mortgage holders to report a rise in living expenses in general, they were twice as likely to attribute housing costs as a reason for increased spending. 

This is because mortgage holders on fixed rates are protected from rising housing costs while renters are exposed to higher rents. 

Some 16 per cent of mortgage holders said they were using more credit than usual to cope, such as credit cards and loans, while a quarter relied on savings. 

For renters, 19 per cent turned to sources of credit while 23 per cent used their savings. 

Overall, the figures showed that the cost of living had risen for 89 per cent of adults, which the ONS equated to 46 million people in Britain. This was up from the 62 per cent who reported rising costs when first asked in November 2021. 

Some 94 per cent said the price of their food shop had increased, 82 per cent said this was down to rising gas and electricity bills and 77 per cent attributed this to hiked up fuel prices. 

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