Cost of owning and running a home rising by £179 a year

The annual cost of owning and running a house has increased by £179 over the past year, according to new research from Halifax.

This represen…

The annual cost of owning and running a house has increased by £179 over the past year, according to new research from Halifax.

This represents the third successive annual increase in the expense of homeowning following the decline which was recorded in 2008 and 2010 because of the reduction in mortgage rates.

Owning and running a home is now costing 1.9 per cent more that it did a year ago. In 2012, it took an average of £9,411 and this figure is now £9,590.

The average annual costs of owning and running a home are now two per cent (£184) higher than they were five years ago. However, this increase is significantly lower than the 18 per cent increase in overall consumer prices since 2008.

Housing costs rose in all regions in the past year, with the smallest increases being in the east Midlands (two per cent) and London (two per cent). Incidentally, London remained the most expensive place to own a home, with costs being £12,094 – 26 per cent above the national average.

Of all the costs a household must face, it is water and energy bills that have risen the most. The average water bill has increased by 5.6 per cent over the last year, meaning households must find an extra £27. Gas and electricity bills leaped by an average of £70 a year, representing a 4.2 per cent rise.

On a positive note, the average annual mortgage payment has dropped by £950 (21 per cent) over the last five years, which will have helped homeowners alleviate the rising costs of energy bills.

However, as more homeowners are juggling these payments with an increasing amount of debt, it can be difficult to find the money to pay for bills, heating and food.

Individuals who are in arrears could benefit from a debt consolidation loan, which would bring all outgoings together into one affordable payment.

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