Average cost of owning a home up by £179 a year

THE annual cost of owning and running a house has increased by an average of £179 in the past year, according to a study.

The typical cost has risen by 1.9 per cent, from £9,411 last year to £9,590, but less than the 2.7 per cent increase in consumer prices over the same period, Halifax said.

It is the third successive annual increase in the cost of owning a home, following the decline recorded between 2008 and 2010 driven by a reduction in mortgage rates.

Overall, the average annual cost of owning and running a home is 2 per cent, or £184, higher than five years ago but significantly lower than the 18 per cent increase in overall consumer prices since 2008.

Water bills lead the increase in percentage terms, rising by an average 5.6 per cent (£27) over the past year, followed by electricity and gas at 4.2 per cent (£70). Telephone bills have increased by an average 3.3 per cent on last year.

The average annual mortgage payment has fallen by £950 (21 per cent) over the past five years from £4,521 in 2008 to £3,571 in 2013, Halifax said.

In contrast, the cost of each of the other ten housing expenditure categories has risen since 2008, topped by electricity and gas bills at 57 per cent or £626 a year followed by home and garden tools (25 per cent) and water supply and miscellaneous dwelling services (22 per cent).

As a result, mortgage payments have dropped significantly as a share of total housing costs, from 48 per cent in 2008 to 37 per cent in 2013.

Halifax housing economist Martin Ellis said: “Lower mortgage payments have largely offset increases in other items, such as the substantial rises in electricity and gas bills.”