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Household Costs Indices for UK household groups: October to December 2024

ended 27. February 2025

The ONS has today published a report on household costs - key points below. Any thoughts, send them across ASAP. 

  • Overall, UK household costs, as measured by the Household Costs Indices (HCI), rose 2.8% in the year to December 2024, compared with 2.0% in the year to September 2024.
  • Over the past 12 months, the all-households inflation rate has followed the sixth income decile most closely; costs for these households rose 2.7% in the year to December 2024, compared with rises of 3.2% for high-income households (decile 9) and 2.6% for low-income households (decile 2).
  • By tenure type, private renter households had the highest annual inflation rate of 3.9% in the year to December 2024, reflecting rising private rental payments; followed by mortgagor households, with a 3.1% inflation rate, in the year to December 2024.
  • Outright owner occupiers experienced the lowest annual inflation rate of all tenure types, at 2.1% in the year to December 2024; social and other renters had the next lowest (3.0%).
  • Non-retired households continued to experience a higher annual rate of inflation (3.0%) in the year to December 2024 than retired households (2.3%).
  • The annual inflation rate for households with children rose to 3.0%, and the rate for households without children rose to 2.8%, in the year to December 2024.

2 responses from the Newspage community

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Editor
Jamie Elvin
Director at Strive Mortgages
Inflation may be cooling, but for many households, the squeeze is still tightening. Private renters, mortgagors, and families are bearing the brunt of rising costs, with rents and mortgages driving the sharpest increases. While outright homeowners see the lowest inflation, the gap between income groups and tenure types shows the cost-of-living divide is far from over. Until wages and benefits keep pace, many will feel like they’re running just to stand still.
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Steve Humphrey
Adviser & Founder at The Mortgage Pod
The report highlights relatively marginal differences in household inflation rates, which dare I say feels like a sense of stability and predictability. This is particularly important for mortgage borrowers, as steadier, more predictable costs make financial planning easier. These insights should help consumers make more informed decisions about their housing and financial future.