Costs of Running a House Soon Add Up
Running a home is an expensive business, with housing costs accounting for almost a quarter of average full-time earnings in 2009.
However, in April 2009, the cost of owning and running a home was at its lowest since 2006, according to mortgage provider Halifax, with the average annual cost of housing falling by 17 per cent, from £8,766 in April 2008 to £7,298 by the following year.
Although London saw the biggest drop in the cost of owning and running a home, with an average decline of 21 per cent, it remained the most expensive region, with annual housing costs standing at £9,180, compared to a national average of £7,298.
In April 2008, mortgage interest payments accounted for a massive 43 per cent of annual household spend, costing £3,748 a year. This is largely due to a drop in the average mortgage rate from 5.80 per cent in April 2008 to 3.62 per cent a year later.
Gas and electricity
The biggest increase in the cost of running a home came from gas and electricity charges, which went up by £159 since April 2008 to a total of £1,409 – accounting for 19 per cent of household spend.
Council tax and domestic rates was the third biggest drain on household accounts, costing an average of £1,261 a year – or 17 per cent of household spend.
Saving on your bills
Although they have fallen over the past year, mortgage interest payments make up the biggest chunk of your annual household spends. So switching your mortgage or fixing it at one of the great rates available at the moment, is a great way to take thousands off your mortgage.
With gas, electricity and other fuels costing an average of £1,409 a year at April 2009, it makes sense to shop around to get the best deal. Online comparison services can help you find a tariff that suits your needs as well as shaving hundreds of pounds a year off your bills.
Switching your home phone, digital TV and even your broadband to a new package or provider can also save you hundreds of pounds a year, helping your money go further.
- 23 guides are tagged with advice
- 38 guides are tagged with car insurance
- 28 guides are tagged with current account
- 63 guides are tagged with savings
- 28 guides are tagged with debt
- 51 guides are tagged with insurance
- 32 guides are tagged with savings accounts
- 56 guides are tagged with mortgage
- 55 guides are tagged with mortgages
- 33 guides are tagged with money
- 43 guides are tagged with credit card
- 45 guides are tagged with home insurance
- 33 guides are tagged with banking
- 59 guides are tagged with loans
- 44 guides are tagged with credit crunch
- 63 guides are tagged with credit cards
- 38 guides are tagged with Savings account
- 40 guides are tagged with finance
- 37 guides are tagged with travel insurance
- 24 guides are tagged with current accounts