Cost of being a homeowner up by £179 over last 12 months
The typical annual expense of owning and running a home in the UK has risen by 1.9% from £9,411 in 2012 to £9,5901, according to new research by Halifax. It is the third successive annual increase in the cost of owning a home after the decline recorded between 2008 and 2010, driven by the reduction in mortgage rates.
Water bills have increased by an average 5.6% (£27) over the past year. The next biggest percentage rise was in electricity/gas bills, up by an average of 4.2% (£70).
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.
Since 2008, mortgage payments have fallen by nearly a quarter, from £4,521 to £3,571 in 2013. Electricity and gas bills have risen most (up by 57%, or £626 a year), followed by home and garden tools (25%) and water supply and what Halifax describes as “miscellaneous dwelling services” (22%).
“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,” says Martin Ellis, housing economist at Halifax. “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.”real estate
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