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Cost of running a home increases

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A study has revealed the cost of owning and running a home has reached its highest level in four years.

The findings from Halifax showed that homeowners spend £9,393 on household costs annually, resulting in a 2.7% rise compared to last year. A rise in gas and electricity bills this past year is one of the main reasons for the cost of running a home being so high.

Households will be feeling the pressure to enable their budgets to stretch far enough as high inflation increases the cost of living. The cost of bills has risen by 2.7% with pay only rising by 1.4% making it difficult for families to make ends meet.

The figure represents household bills and mortgage payments not taking into account big home improvements such as a new kitchen or bathroom. Mortgages continue to be the main expense by 37%, the second being fuel bills with 18% and council tax payments being the third with 15%.

However the survey also showed that mortgage payments had fallen to £3,485 from £3,551 in 2011 and £4,521 in 2008.

Different areas of the UK will also see a difference in the cost of running a household with a family living in London facing an average annual bill of £11,843 and the North-East of England being £7,983.

Martin Ellis, housing economist at Halifax, commented: “The typical costs of owning and running a home has increased over the past year, returning the overall level to that of four years ago.

“This has happened despite the substantial fall in mortgage payments over recent years, as all the other costs associated with home ownership have risen.

“The prospect of declining consumer price inflation through much of 2012 may help the costs associated with running a home to ease as well, providing some welcome relief to homeowners.”

© Copyright Autonet Insurance

By Amanda Bainbridge