Halifax: Homeowners' spending power rises

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Halifax: Homeowners' spending power rises

Halifax has claimed that the spending power of British homeowners has risen by a tenth over the last year.

Using data from the Office for National Statistics, the Council of Mortgage Lenders and the Bank of England, Halifax has calculated that between March 2008 and March 2009, the average mortgage-paying disposable income rose from £892 to £989.

Taking away the costs of essential bills and taxes, the bank's research discovered that 48 per cent of the average homeowners' income is free to be spent on non-essential items.

This is compared to 45 per cent a year previously.

Halifax economist Suren Thiru explained: "The considerable fall in mortgage repayments over the period has been a key factor behind the increase, providing a timely boost to mortgage holders' spending power."

Meanwhile, chief executive of the TaxPayers' Alliance Matthew Elliott last week said that the planned rise in VAT in the new year will be damaging to both the consumers and the economy.

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