Whether you’re renting or buying, the cost of living comes down to more than just your mortgage or rent. We’ve compiled a list of things to help you budget for bills so that you can better navigate the average cost of running a house per month!
Utility Bills – We know this seems pretty obvious, but it’s important to keep in the forefront of your mind how much your bills are likely to cost, after all, they often make up a sizeable part of the average cost of running your house! These usually include gas, water and electricity, and will rise with inflation every year. Using websites which compare different energy and water providers are incredibly important and a really easy way to make sure you’re getting the best deal. If you’re just about to buy a property, it’s important to look at the energy efficiency certificate, as this will give you an indication of how much your bills are going to be. By doing this, you can better gauge the average cost of running a house per month.
Council Tax – Unless you’re a student, you’ll have to pay council tax. This varies depending on the area you are in and which band your council has assigned to your area. If you’re living on your own, you can apply for a 25% discount. Either way, it’s an important one to remember when assessing your running costs.
TV License – This is £147 a year, but if it’s easier to budget, you can pay this monthly or even weekly. Spreading the cost out can help to significantly ease the dent in your budget.
Insurance – When it comes to working out the average cost of running a house per month, this is one that often gets forgotten. Most mortgage lenders require you to have building insurance as part of their lending criteria and it is certainly strongly recommended even if you own your home outright! You can shop around to find the best deal for you, so it’s important to do your research!
Ground Rent – If you live in a flat you’ll have to factor in monthly charges of ground rent. You are normally required to pay for service and maintenance checks as well, and these can cost around £100-£200 a month. Therefore, it’s a crucial element to factor into the average monthly cost of running your property as it can take up a substantial amount of your budget.
The best way to save money when running a house is to plan all the costs which you may incur and to budget appropriately. That way, there’ll be no nasty surprises in your mail and you can feel more comfortable with where your money is going and why.