Are you planning to purchase your first home? This article provides an outline of the household bills and maintenance costs you need to keep in mind when you move into your first home.
A homeowner is responsible for a number of expenses and household bills that may not have been part of their budget when they were renting a property.
Let’s look at the costs of running a house or flat.
Home Insurances
Buildings Insurance
The cost to cover the expenses to repair any damage to the structure of your residential property, house or flat, comes under building insurance.
In the case of buying your first home with a mortgage, building insurance is a must-have.
Contents Insurance
Contents insurance on the other hand is not compulsory but recommended to cover destroyed, damaged, or stolen belongings.
Building insurance and contents insurance can be bought together as home insurance.
Flats Charges
In the case of a leasehold flat, the owner has to pay monthly or quarterly ground rent and service charges.
Ground Rent
Flats sit on land and traditionally the flat owner in England and Wales has to pay a token fee to the freeholder. It is a fee that is paid in exchange for renting the land the property sits on.
Service Charges
The flat owners also have to pay for the maintenance and management costs of the building’s communal areas. It tends to cost somewhere between £100 and £200 per month but it may vary from building to building.
Utility Bills And Taxes
Energy Bill
Your electricity and gas bill covers the cost of keeping your house warm and powering it up. Depending upon the energy company you chose, you have to pay energy bills either monthly, quarterly or once a year. Before buying a property, check the energy performance certificate to evaluate its energy efficiency and estimated bills you will be paying.
Learn: How To Reduce Your Energy Bills
Water And Sewerage Bill
The average household bill for water and sewerage is £415 in England and Wales for 2019-20, or £34.58 per month, according to Water UK.
Water rates vary and unlike with energy, switching water suppliers isn’t an option because it is allocated depending on where you live.
Council Tax
As a homeowner, you will have to pay Council tax to your local authority for services in your community.
The amount of council tax depends on the home’s worth in 1991. A 25% discount can be applied if the property is empty or you live alone.
TV, Broadband And Phone Bills
TV, internet and phone bills can take a substantial piece out of your budget. But haggling on your TV and broadband bundle, you can bag up to a 20% discount on average.
TV Licence
You may also need to pay a TV licence fee that is £154.50 a year if you use:
● Freesat or Freeview
● On-demand or catch-up programme services
● A pay-TV service
Maintenance And Other Homeowner Costs
Home Repairs And Maintenance Costs
Having a boiler breakdown or water leak in the bathroom or kitchen are unforeseen expenses that could put a dent in savings. As a homeowner, you must set aside some money each month so you’re prepared for such events.
Go through: Home Viewing Checklist
Parking Charges
A residential parking permit is required if you don’t have a driveway, garage, or free on-street parking. The cost of parking permits will vary depending on the area you are living in.
Mortgage Repayments
If you bought your home on a mortgage, it goes without saying that this will need to be paid in place of rent.
Learn more: Mortgage – An Easy-to-understand Guide
