Annual cost of running a home rises by £179
According to research by Halifax, the typical annual cost has risen 1.9%, from £9,411 to £9,590 in the past year. However, the increase is less than the 2.7% rise in consumer prices over the same period.
The report also highlights that this increase is the third successive annual increase in the cost of owning a home following a decline recorded between 2008 and 2010, which was driven by the reduction in mortgage rates during this period.
Martin Ellis, housing economist at Halifax, said: “The typical costs of owning and running a home have again increased slightly over the past year, although this rise was below the general increase in the cost of living.
“Overall, the cost of owning a home has increased by 2% over the past five years, representing a significant decline in real terms. Lower mortgage payments have largely offset increases in other items of housing-related expenditure, such as the substantial rises in electricity and gas bills.”
Water and fuel bills have increased the most in the past few months, with all of the ‘Big 6′ energy suppliers hiking up their prices. Water regulator, Ofwat, also increased the price of water bills from Easter Monday.
Water bills have increased by an average of 5.6% over the past year, with electricity and gas bills increasing by an average of 4.2%.
Running a home has also increased across the country in the past 12 months, with Northern Ireland and Wales seeing the fastest rate increase in consumer price inflation.
Total annual costs of owning and running a home are highest in London, at £12,094. This is 26% (£2,504) above the UK average and 52% (£4,124) higher than in Northern Ireland (£7,970), which has the lowest costs.