Madame economisté
@feliciao.bsky.social
economic research. Former Economist Resolution foundation I Founder of The Black Economists Network | LSE alumni | all views = mine!
...but now arrears are creeping further up the income distribution. In 2023–24, 15% of families in the second income quintile were behind on at least one bill, compared with single-digit levels just a few years earlier.
September 11, 2025 at 3:59 PM
...but now arrears are creeping further up the income distribution. In 2023–24, 15% of families in the second income quintile were behind on at least one bill, compared with single-digit levels just a few years earlier.
Council Tax arrears in England tell the same story. They stood at £4.6 billion in 2019–20 but have risen by almost half to £6.7 billion in 2024–25. These debts are increasingly concentrated among poorer families...
September 11, 2025 at 3:59 PM
Council Tax arrears in England tell the same story. They stood at £4.6 billion in 2019–20 but have risen by almost half to £6.7 billion in 2024–25. These debts are increasingly concentrated among poorer families...
For instance, energy arrears have more than doubled during the cost of living crisis. The total stock rose from £1.7 billion in early 2019 to £4.2 billion by early 2025. Nearly 1 million electricity and almost 1 million gas customers are now behind on their bills
September 11, 2025 at 3:59 PM
For instance, energy arrears have more than doubled during the cost of living crisis. The total stock rose from £1.7 billion in early 2019 to £4.2 billion by early 2025. Nearly 1 million electricity and almost 1 million gas customers are now behind on their bills
The cost of living crisis followed straight after. Normally we might expect savings to collapse and debts to surge. Yet household balance sheets among poorer families held up better than feared: consumer credit use did not rise, and many continued to save.
September 11, 2025 at 3:58 PM
The cost of living crisis followed straight after. Normally we might expect savings to collapse and debts to surge. Yet household balance sheets among poorer families held up better than feared: consumer credit use did not rise, and many continued to save.
There has also been progress on savings. Between 2006 and 2022, the share of poorer households with less than £1,000 set aside fell from 63% to 43%. More families have at least a small buffer in place to deal with unexpected costs.
September 11, 2025 at 3:58 PM
There has also been progress on savings. Between 2006 and 2022, the share of poorer households with less than £1,000 set aside fell from 63% to 43%. More families have at least a small buffer in place to deal with unexpected costs.
This means families are carrying less debt than before the financial crisis. And for low-to-middle income households specifically, average consumer debts are lower today than in 2006–08. Formal borrowing like credit cards and loans has fallen, significantly.
September 11, 2025 at 3:58 PM
This means families are carrying less debt than before the financial crisis. And for low-to-middle income households specifically, average consumer debts are lower today than in 2006–08. Formal borrowing like credit cards and loans has fallen, significantly.
Let’s start with the good news. Consumer debt has fallen sharply since the mid-2000s. It peaked at around £5,700 per person in 2005, but has since declined to just £3,300 today — the lowest level on record.
September 11, 2025 at 3:58 PM
Let’s start with the good news. Consumer debt has fallen sharply since the mid-2000s. It peaked at around £5,700 per person in 2005, but has since declined to just £3,300 today — the lowest level on record.
For more analysis on how housing is affecting living standards for UK families, check out our Housing Indicators here: buff.ly/A2Wof3A
August 20, 2025 at 11:57 AM
For more analysis on how housing is affecting living standards for UK families, check out our Housing Indicators here: buff.ly/A2Wof3A
Rents aren’t outpacing earnings everywhere. In a 1/3 of local authority areas, including the Derbyshire Dales and Hartlepool, earnings since May 2022 have instead outpaced rents, easing the pressure on local private sector renters.
August 20, 2025 at 11:57 AM
Rents aren’t outpacing earnings everywhere. In a 1/3 of local authority areas, including the Derbyshire Dales and Hartlepool, earnings since May 2022 have instead outpaced rents, easing the pressure on local private sector renters.
This sharp rise in the affordability wedge is not confined to London. In the Welsh Valleys, rents in Torfaen have increased by 40% in the past 3 yrs, while pay has grown only 21%. A similar pattern is seen in neighbouring Rhondda Cynon Taf.
August 20, 2025 at 11:57 AM
This sharp rise in the affordability wedge is not confined to London. In the Welsh Valleys, rents in Torfaen have increased by 40% in the past 3 yrs, while pay has grown only 21%. A similar pattern is seen in neighbouring Rhondda Cynon Taf.
At the local level, this ‘affordability wedge’ has been most stark in London with 6 boroughs featuring in the top 10 local authorities with the biggest affordability gap. In Tower Hamlets, rents are up 35% since 2022, while earnings have risen by just 18%.
August 20, 2025 at 11:57 AM
At the local level, this ‘affordability wedge’ has been most stark in London with 6 boroughs featuring in the top 10 local authorities with the biggest affordability gap. In Tower Hamlets, rents are up 35% since 2022, while earnings have risen by just 18%.
But from mid-2022, the points at which rents accelerated, earnings haven’t kept up, especially since 2023. This has opened up an ‘affordability wedge’. Had rents grown in line with earnings since May 2022, average rents would be £720 a year lower today.
August 20, 2025 at 11:57 AM
But from mid-2022, the points at which rents accelerated, earnings haven’t kept up, especially since 2023. This has opened up an ‘affordability wedge’. Had rents grown in line with earnings since May 2022, average rents would be £720 a year lower today.
While rents overall continue to rise, data on new tenancy prices from Homelet shows annual growth was just 0.4% in July – a dramatic slowdown from the 10%+ increases recorded in mid-2022, &the slowest rate of growth (for new tenancies) in 8 years.
August 20, 2025 at 11:57 AM
While rents overall continue to rise, data on new tenancy prices from Homelet shows annual growth was just 0.4% in July – a dramatic slowdown from the 10%+ increases recorded in mid-2022, &the slowest rate of growth (for new tenancies) in 8 years.
The rate of rental price growth, and the extent to which growth is slowing, varies across regions. Rents are growing more than twice as fast in the North East as in Yorkshire (8.9% compared to 3.5%). The rate of growth slowed fastest in London (down from 7.3% to 6.3%).
August 20, 2025 at 11:57 AM
The rate of rental price growth, and the extent to which growth is slowing, varies across regions. Rents are growing more than twice as fast in the North East as in Yorkshire (8.9% compared to 3.5%). The rate of growth slowed fastest in London (down from 7.3% to 6.3%).
New private rental price data out today shows prices are still climbing - but the pace of growth is continuing to ease. In the year to July 2025, UK private rents rose to 5.9%, down from 6.7% in June.
August 20, 2025 at 11:57 AM
New private rental price data out today shows prices are still climbing - but the pace of growth is continuing to ease. In the year to July 2025, UK private rents rose to 5.9%, down from 6.7% in June.
That means the average UK home now costs around £265,000, which is roughly £9,000 more than this time last year.
June 19, 2025 at 3:21 PM
That means the average UK home now costs around £265,000, which is roughly £9,000 more than this time last year.
Now turning to house prices - the latest ONS data shows annual growth fell in April 2025, down to 3.5% from a revised figure of 7.0% in March, breaking the upward trend that had been building since the slowdown in 2024.
June 19, 2025 at 3:21 PM
Now turning to house prices - the latest ONS data shows annual growth fell in April 2025, down to 3.5% from a revised figure of 7.0% in March, breaking the upward trend that had been building since the slowdown in 2024.
So why have rents been rising so sharply? An important driver of rent levels is renters' ability to pay - in general rents track earnings pretty closely. With rapid earnings growth post pandemic, it's not surprising that this has fed into rents.
June 19, 2025 at 3:21 PM
So why have rents been rising so sharply? An important driver of rent levels is renters' ability to pay - in general rents track earnings pretty closely. With rapid earnings growth post pandemic, it's not surprising that this has fed into rents.
Looking ahead, HomeLet data shows rent growth for new tenancies is cooling. It slowed to just 0.8% in May, well below the 2022 highs. Still, many renters haven’t yet faced rent hikes, so average rents will likely keep rising as older tenancies gradually catch up.
June 19, 2025 at 3:21 PM
Looking ahead, HomeLet data shows rent growth for new tenancies is cooling. It slowed to just 0.8% in May, well below the 2022 highs. Still, many renters haven’t yet faced rent hikes, so average rents will likely keep rising as older tenancies gradually catch up.
As usual, the aggregate picture masks regional differences. In May, the North East recorded the fastest annual rent rise at 9.7%, while Yorkshire and The Humber saw a much more modest increase of just 3.7%.
June 19, 2025 at 3:21 PM
As usual, the aggregate picture masks regional differences. In May, the North East recorded the fastest annual rent rise at 9.7%, while Yorkshire and The Humber saw a much more modest increase of just 3.7%.
Let’s begin with rents. Private rents are still rising rapidly but the pace of increase continues to slow. According to ONS, rents rose by 7.0% in the year to May 2025, slightly below the 7.4% rise seen in the year to April.
June 19, 2025 at 3:21 PM
Let’s begin with rents. Private rents are still rising rapidly but the pace of increase continues to slow. According to ONS, rents rose by 7.0% in the year to May 2025, slightly below the 7.4% rise seen in the year to April.
This month, the Bank of England cut rates to 4.25% & more cuts expected this yr. That offers some relief to ~625k+ households coming off 2y mortgages & facing lower rates. But ~690k on 5-yr deals could still see costs rise. Its likely that we’re near the peak of mortgage pressure
May 21, 2025 at 11:21 AM
This month, the Bank of England cut rates to 4.25% & more cuts expected this yr. That offers some relief to ~625k+ households coming off 2y mortgages & facing lower rates. But ~690k on 5-yr deals could still see costs rise. Its likely that we’re near the peak of mortgage pressure
However, house price growth is far from uniform across regions. London saw annual growth of just 0.8%, while the North East led the way at 14.3%.
May 21, 2025 at 11:21 AM
However, house price growth is far from uniform across regions. London saw annual growth of just 0.8%, while the North East led the way at 14.3%.
This means that the average UK home now costs £271k — £16k more than it was 12 months ago.
May 21, 2025 at 11:21 AM
This means that the average UK home now costs £271k — £16k more than it was 12 months ago.
Now onto house prices - latest ONS data shows annual price growth reached 6.4% in March 2025, up from 5.5% in Feb 2025 and continuing the recent trend upward since the dip in early 2024 .
May 21, 2025 at 11:21 AM
Now onto house prices - latest ONS data shows annual price growth reached 6.4% in March 2025, up from 5.5% in Feb 2025 and continuing the recent trend upward since the dip in early 2024 .