We earn a commission for products purchased through some links in this article.
A new study exposes the significant contrasting costs of average household bills, plus rent or mortgage payments, for the same sized homes in 72 towns around the UK
The study revealed by leading home insurers More Th>n, found that owning a three-bedroom home in the UK comes with average annual running costs of £18,197 (£1,516 per month). Rented three-bed homes are slightly less expensive at £17,657 per year (£1,471 per month).
For a household with two working adults, each earning the average UK annual salary, this means that between 40% (rented) and 42% (owned) of post-tax earnings are being spent purely on household bills and the rent or mortgage.
Need to save money? How to get the most out of your project’s budget
Overall, the figures work to reveal that families today either need the head of the household to be earning significantly more than the average UK salary, or for both parents to be working, just to make ends meet.
More Th>n’s Cost of Running a Home research found significant variations in the costs of running the same-sized homes in 72 towns across the UK. Unsurprisingly, most stretched are households in the highest region of Greater London, where 70% of properties cost more than £1,818.7 per month to run – the average UK net take-home after tax.
Excluding expensive central London from the data, the report also reveals the stark contrast in the monthly costs to live in a three-bedroom home in different parts of the country.
So where are the most expensive and cheapest areas in the UK for running costs such as gas, electricity and insurance?
The three most expensive areas for running costs for an average 3 bed home in the UK are:
- Cambridge running, £2236.18
- Stratford-Upon-Avon, £2082.68
- Worthing, £2059.99
- Oxford, £2157.93
- Croydon, £2141.20
- Cambridge, £1924.82
And, the cheapest areas for running costs for an average three-bed home in the UK are:
- Neath Port Talbot, £813.51
- Antrim, Northern Ireland, £856.27
- Derry, Northern Ireland, £861.48
- Omagh, Northern Ireland £841.18
- Derry, Northern Ireland, £880.36
- Antrim, Northern Ireland, £890.10
Looking to increase your property equity? Check out the best ways to add value to your home.
And with the cost of household bills continuing to rise across the UK, here are a few tips to help cut the cost each year:
- Check with your local council to make sure you are paying the right Council Tax rate. Bands can range dramatically.
- Coming to the end of your mobile phone tariff? Use online tools to analyse your phone usage and find the right plan for you. Negoiate with your supplier and shop around.
- Still using the same energy supplier? Log on to Uswitch and check out other companies. You’ll be suprised how many smaller, more affordable companies exist.
- Insurance policy coming to an end? Start shopping around for new cover around a month before your renewal date. You could save £££s compared to if you leave it until the day your policy expires.