New research by the Halifax shows that the cost of owning and running a home in the UK has fallen by nearly a fifth over the past year. Between April 2008 and April 2009, the average annual cost of housing fell from £8,766 to £7,298, a decline of 17% (£1,468). 

According to the Halifax, housing costs currently account for 23% of average UK full-time earnings, down from 28% in 2008, which means that the expense of owning and running a home is at its lowest since 2006. The significant fall in housing expenses over the past year, it says, was driven by a 47% decline in mortgage interest payments. The average mortgage rate fell to 3.62% in April 2009, from 5.8% a year earlier. 

The research finds that mortgage interest payments were the only housing expense category to experience a fall between April 2008 and April 2009. The largest upward pressure on housing costs came from electricity and gas charges, which have risen by 13% (£159) over the past year, from £1,249 in April 2008 to £1,409 in April 2009. Routine maintenance saw the next largest increase (7%). 

Suren Thiru, economist at the Halifax, commented, "Such a sizeable drop in the costs of running a home will help to ease the pressure on household disposable income, providing some welcome relief to homeowners. Those living in London saw the biggest fall in housing costs over the past year, although the average annual expense of owning and running a home in the capital remains somewhat higher than elsewhere in the UK."