Cost of Running a Home Falls
Lower mortgage repayment rates mean that the cost of running a home has fallen by 14 percent in the past two years, but it still costs an average of £8,059 a year.
Sainsbury’s research showed the reason behind this was due to the significant fall in the cost of mortgage payments as the base rate is held at 0.5 percent.
If you are struggling to make your income cover the costs of running a home try budgeting on a prepaid credit card.
Mortgage costs account for 43 percent of all household expenditure and currently borrowers are paying 28 percent less on this than they were in October 2008.
The estimations show per week the average cost of running a home is £155 or £22.08 a day, compared to the annual cost in 2008 which was £9,324.
“We spend thousands of pounds each year running our homes and have often invested even more money furnishing them,” said Ben Tyte, Sainsbury’s Home Insurance head.
Council tax is the next biggest expenditure after mortgage payments which accounts for 17 percent of total costs and has increased by nearly five percent in the past two years. Water and sewerage costs have increased by almost three percent.
Electricity and gas costs were the other two areas which were shown to have decreased by 5.91 percent and 9.01 percent respectively, but are due to rise again following the announcement from British Gas and Scottish and Southern Energy that they are raising their tariffs in December, by seven percent and 9.4 percent respectively.
Prepaid Credit Cards
As energy price hike are looming and the VAT rise from 17.5% to 20% comes into force in January, many households could see the cost of running their homes rise.
If you are worried about how your income will accommodate this try using a free prepaid credit card to help budget everyday spending.