The annual cost of running a home is more than £10,000 a year, 16 per cent higher than in 2003/4, according to new research.

Figures from Sainsbury's Bank reveal homeowners spend £10,048 a year covering the cost of things such as the mortgage, home insurance, alterations and improvements, council tax, water, gas and electricity.

This is £1,389 higher than the equivalent three years ago caused by a rise in every area apart from maintenance and repairs where costs fell from £427 to £393.

The Sainsbury's study found that mortgage repayments made up 59 per cent of the total annual costs of running a home, followed by the money spent on alterations and improvements (13 per cent).

Karen Preston, from Sainsbury’s Bank, said: "[It is] all the more important for homeowners to shop around in order to make sure they are getting the very best deals available, not just on home insurance but the collective running costs, everything from your mortgage to gas supply."

Energy regulator Ofgem estimates that over ten million domestic customers are losing out on over £1 billion by not switching suppliers.