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Cost of living support


  • Before the £15bn support package was announced in May, the cost-of-living crisis seemed very likely to dent confidence in the housing market. 
  • Real disposable household income is a good measure of the cost of living. It tracks the impact on average incomes of changes in inflation, tax and benefits.
  • Inflation soared as economies reopened after Covid, alongside supply chain disruption and a global energy crunch exaggerated by the war in Ukraine. 
  • The £15bn alleviation measures will help offset the increase in energy costs with less well-off households helped most. 
  • Clearly other cost pressures remain, but this assistance should help limit the negative impact on the economy and the housing market. Source: Dataloft, HM Treasury Consensus Forecasts May 2022


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