Top stories of the past week

This post appeared as a column in this week's Mail on Sunday. Also, don't miss: This is Money's 1.2m readership and the top stories of the month

The most clicked-on stories of the past week perfectly capture the problem facing millions of Britons.

Soaring oil and global food prices, largely a result of China's growing appetite for commodities,  has pushed up UK petrol costs, heating bills and prices in supermarkets. Add in repeated inflation-busting council tax hikes over the past six years and you have the perfect financial storm that now faces us all.

First-time buyers are feeling the pinch most: priced out of an expensive market and in need of larger deposits to secure a mortgage, following a post-credit crunch tightening of lending criteria.

To add to the misery it now emerges (story no.5) that with potential buyers spooked by the faltering property market, demand for rented property is on the rise. For the first time, the average home costs more than £1,000 per month to let. Typical repayments on the average £100,000 mortgage, on the other hand, are still  barely more than £700.

And the final blow? Rising commodity prices means greater inflation pressure, and that's what prevented the Bank of England cutting rates this week (story no.3). The storm couldn't be more perfect.

1. Thousand estate agents closed this year
2. Four ways to ease petrol price pain
3. Price fears hold Bank back from a rate cut
4. Spending power is at a 17-year low
5. Property turmoil sees rents hit £1,000
6. Advice for Inside Track victims
7. Midas share tips: HBOS rights issue
8. Warren Buffett tips South Korea
9. Microsoft mobile could pip iPhone
10. Tie up your money for better income

- Andrew Oxlade, Editor, This is Money

Comments

[Andrew Mansell]

"For the first time, the average home costs more than £1,000 per month to let. Typical repayments on the average £100,000 mortgage, on the other hand, are still barely more than £700."

The average home does not equal the average £100,000 mortgage. Indeed the average fmaily home is nearer the £200,000 mark, which means that the monthly mortgage would be £1,400.

Renting thus costs £400 less in interest per month than buying. You also don't face the current risk of capital depreciation.