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Cost of living now over €50,000 a year

  • 05/11/2018
  • Author:bridgetmccall

For a typical family who bought even a small home when the Irish economy was booming

Woman in a supermarket

A typical family who bought even a small home when the Irish economy was booming is likely to spend more than €50,000 after tax over the next 12 months. This is when the cost of groceries, mortgage payments, utility bills, motoring, phones, a modest social life, home and car insurance, school and childcare expenses and other essential costs are added up.

According to independent figures compiled by the Irish Times, and the seventh annual cost-of-living survey published on 5 November 2018 by AA Home Insurance, prices in key areas have climbed over the last 12 months. As a result, any savings have been largely wiped out from the tax changes rolled out in last month’s budget.

According to the figures from the AA, the annual cost of owning and maintaining a family home now stands at €16,374, an increase of over €350 compared with 2017. And that figure does not include food, entertainment, education, clothes or any of the other things people need to stay alive.

Comments from AA's Director of Consumer Affairs

Conor Faughnan, the AA's Director of Consumer Affairs, told the Irish Times: “Another year of rising household costs is the last thing that homeowners would have wanted to hear but it is, unfortunately, the situation that we find ourselves in.

“While the continued climb of house prices has been one of the major stories of 2018, it’s not just the cost of mortgage repayments or getting your foot on the property ladder that have risen in the past 12 months.

“Home heating and electricity costs have also surged in the past year, meaning that even those who were fortunate enough to acquire their home when property prices were a little lower have seen their wallets take a significant hit.

“Overall, the percentage of the average national wage which must be put aside to cover these costs has dropped slightly, by approximately 1 per cent [but] many homeowners will be concerned to see the cost of most of their household bills increasing. Meanwhile, these latest figures also represent bad news for those who are currently renting and attempting to purchase their first home as meeting the deposit requirements while still having to cover many of the bills that come with home ownership makes getting on the property ladder a significant challenge."

Urgent action needed

Mr Faughnan went on to say: "Urgent action in terms of the available housing stock is needed” if the issue of rising house prices is to be tackled “but questions also need to be asked of what supports can be made available to those struggling to meet these costs”.

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Source: Irish Times: Families feel the pinch as cost of living rises to over €50,000 a year

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