Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
What it means
Compare regular housing costs, such as rent or mortgage payments, with income over the same period. If a large share goes on housing, less remains for other needs. Reports do not all count the same costs or use the same income: one may count rent and household income after tax, while another may count mortgage payments and income before tax. A published “burden” figure only makes sense alongside its rules for what it includes.
Example
A household takes home £2,000 a month and pays £600 a month in rent. Rent alone is 30% of that take-home income (£600 divided by £2,000). Other housing bills would make a broader housing-cost measure higher.
Why it matters
Two households with the same income can face very different pressure if one pays much more to live in its home.
Also known as
housing cost to income ratio
Related terms
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Housing affordability
Whether people can manage the cost of buying or renting a home.
Read more -
Income after housing costs
Household income after taking off specified housing costs, including rent or mortgage interest.
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Mortgage affordability
Whether a household can manage the payments on a home loan alongside its other costs.
Read more -
Social rent
Rent for certain social homes set under special rules, rather than at the going local market rate.
Read more
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A higher energy price cap means many households will be paying more to heat and power their homes during the colder months.
Guides and insights
Analysis
Clear, accessible analysis of the economic issues shaping everyday life
Living standards
What does a day’s work buy?
Comparing the cost of everyday life across generations, from bread and beer to buying a home.
Food & prices
The journey behind your grocery bill
How farming, energy, transport and supermarket competition shape the price on the shelf.
Prices & inflation
Inflation is falling. What happens next?
What slower price rises mean for wages, purchasing power and economic recovery.
Shared prosperity
What would shared prosperity look like?
Beyond GDP: how we could measure economic success through security, opportunity and living standards.
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