Mortgage interest payments are significant cause of higher inflation
Office for National Statistics (ONS) data showed that mortgage interest payments were a significant cause of the higher inflation seen by non-retired households in the year to June 2026.
UK household costs rose by 2.8% year-on-year in June.
Mortgage interest payments were a leading cause of rising household costs. The payments contributed 0.14 percentage points more to inflation for non-retired households than for retired households.
Although, this narrowed the gap from 0.15 percentage points in March 2026.
Private renters had the highest annual inflation rate, of 3%, in June 2026.
Mortgagor and other owner-occupier households followed next, with a 2.8% inflation rate in the year to June 2026.
£2.5m paid to help broker clients benefit from greener homes
Sponsored by Halifax Intermediaries
Outright owner-occupier households experienced the lowest annual inflation rate of all tenure types, at 2.6% in the year to June 2026.
Cost-of-living pressures were among the causes cited for an annual decline in residential property transactions in July. The base rate hold was welcomed as a buffer against further squeezes on household budgets.
