Inflation in real terms is lower for homeowners, it has emerged.

Figures released by the Alliance Trust show that increasing rent costs are putting young people in a worsened affordability position.

But the over-75s are in the worst situation, faced with an inflation rate of 2.2 per cent - more than a fifth higher than the headline rate of 1.8 per cent.

Property expenditure is also likely to be a key factor for the elderly, as the Alliance Trust recently identified housing costs as one of the two primary areas of spending among the age group.

Shona Dobbie, head of the Alliance Trust research centre, warns that "recent flooding in England and the heat wave experienced in Europe has had an impact on some food crops and prices will probably rise further over the next few months".

But with homeowners facing lower inflation and utility costs stabilising, they may also have additional equity due to rising house prices.

This could be released through secured home loans to meet financial pressures elsewhere in consumers' budgets.ADNFCR-1287-ID-18320937-ADNFCR

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