How Much Does Your Home Really Cost to Run?
Find out what it really costs to run your home, from energy and Council Tax to water, broadband and other household costs, and learn how to track what you're spending.
When you think about the cost of your home, rent or a mortgage might be the first thing that comes to mind. But that is only part of the picture.
Energy, water, Council Tax, broadband, insurance and other property-related costs can all contribute to what your home actually costs you each month.
Understanding those costs can make it easier to see where your money is going, spot when something has changed and make more informed decisions about your home.
What counts as the cost of running your home?
There isn't one figure that tells everyone how much a home costs to run.
The costs you are responsible for will depend on your home, where you live, your household and whether you rent, own or lease your property.
Rather than relying on a national average, it can be much more useful to understand the costs connected specifically to your home.
Some of the main ones to look at include:
Rent or mortgage
For many households, rent or mortgage payments are the largest regular cost associated with the home.
The amount you pay and what is included will depend on your individual circumstances. For example, some rental agreements may include certain services or charges that another household pays separately.
Council Tax
Council Tax is another significant household cost for many homes.
The amount can depend on your property's Council Tax band, your local authority and your circumstances. Some households may also qualify for discounts, reductions or exemptions.
Because Council Tax is usually set annually, it is worth checking your bill rather than assuming it will remain the same from one year to the next.
Gas and electricity
Energy costs can vary considerably between homes.
How much you pay can be influenced by your energy tariff and usage, but the property itself can matter too. Its size, heating system, insulation and energy efficiency can all contribute to how much energy is needed to keep it comfortable.
Your home's Energy Performance Certificate can provide useful information about its energy efficiency, heating and insulation. You can read our guide to what your EPC can tell you about your home.
If your gas or electricity costs have increased unexpectedly, our Energy Costs guide explains some of the information worth checking and keeping.
Water
Depending on where you live and your circumstances, you might pay for water through a meter or another charging arrangement.
Water costs can therefore vary between households, even when the homes themselves appear similar.
Looking at several bills rather than just one can help you understand what your normal usage and costs look like.
Broadband and communications
Broadband is now a regular home expense for many households.
Introductory prices and contracts can change, so it is worth knowing when a deal ends and checking what you are actually paying rather than allowing it to disappear among your other monthly payments.
Insurance
The insurance costs associated with a home depend partly on your circumstances and tenure.
Homeowners may have buildings and contents insurance, while renters may choose to have contents insurance. In some properties, buildings insurance may be arranged as part of another charge.
The important thing is to include the insurance costs that actually apply to your home rather than assuming every household needs the same products.
Service charges and other property costs
Some leaseholders and residents may pay service charges or other property-related charges in addition to their main housing payment.
These can cover different services depending on the property and agreement, so check what your own charges include.
Maintenance and unexpected home costs
Not every cost arrives conveniently once a month.
Depending on your tenure and responsibilities, there may be maintenance, replacement or other unexpected home costs during the year.
If you rent your home, this does not mean that every repair or maintenance cost is your responsibility. Responsibilities differ depending on the type of repair, your tenancy and the circumstances.
The aim is simply to identify the costs you are actually responsible for so you can build an accurate picture of your home.
Why can two similar homes cost different amounts to run?
Two homes can look almost identical and still cost their residents different amounts each month.
Property size and energy efficiency can make a difference, as can heating systems, insulation, household size, energy usage, local Council Tax and the way different services are charged.
Even two neighbouring households may use their homes differently.
This is why national averages only tell part of the story.
Understanding the characteristics of your own property, alongside your actual bills and charges, gives you a much more useful picture.
How do you work out what your home really costs each month?
A simple way to start is to gather your actual bills, statements and regular payments from the last 6 to 12 months.
Write down the home-related costs that apply to you and convert them to the same monthly period.
For example:
Annual cost ÷ 12 = average monthly cost
Quarterly cost ÷ 3 = average monthly cost
For costs that change each month, such as energy, looking across a longer period can give you a more realistic picture than using a single winter or summer bill.
Once everything is expressed as a monthly amount, add the relevant costs together.
You might include:
- rent or mortgage
- Council Tax
- gas and electricity
- water
- broadband
- relevant insurance
- service charges
- other regular property-related costs
You can also keep unexpected costs separately so you can see how much they add over a full year.
The result will not necessarily be the exact amount you spend every month, but it gives you a much clearer idea of what your home costs to run over time.
Which home costs are fixed and which can change?
It can help to separate relatively predictable costs from those that fluctuate.
Some payments may stay the same for months at a time. Others can change because of usage, annual price changes, the end of a contract or changes to your household.
Energy is a good example. A monthly direct debit does not necessarily represent the exact amount of energy you used that month, and your overall energy costs can change with usage and prices.
Instead of only looking at the total cost of your home, keep an eye on the individual parts.
That makes it easier to spot what has changed and when.
What should you do if one of your home costs suddenly increases?
An increase does not automatically tell you why it happened.
Start by comparing the new charge with previous bills or statements.
Depending on the cost, you might check:
- whether the price or tariff has changed
- whether your usage has increased
- whether a discount or introductory deal has ended
- whether the way you are being charged has changed
- whether anything about your home or household has changed
For energy costs in particular, keeping meter readings, bills and dates together can help you understand changes over time.
If a cost does not look right, check it with the relevant provider, landlord, managing agent or organisation rather than assuming the increase is correct.
Can information about your home help you understand its costs?
Yes. Bills tell you what you are paying, but information about the property can sometimes help explain the bigger picture.
An EPC can tell you about the home's energy efficiency and provide information about areas such as heating and insulation.
Knowing the type of heating system you have, understanding the insulation in your home and keeping a record of changes or improvements can also provide useful context when looking at costs over time.
This is one reason we believe knowing your home is about more than having an address.
The more useful information you have about the property and what happens within it, the easier it becomes to build a clearer picture of the home over time.
Keep a simple record of your home costs
You do not need a complicated financial system.
Start with the information you already have.
Keep important bills and statements, note significant changes and periodically check what your main home costs are.
If your energy bill rises, your broadband contract changes or a new charge appears, recording when it happened can make it much easier to understand later.
House Krowd helps residents build a clearer record of their home by keeping useful property information, documents and evidence together.
Understanding your home goes beyond one bill
There is no single number that tells you everything about the cost of your home.
What matters is understanding the different costs that apply to you, how they change and how your property may influence some of them.
Your EPC can help you understand energy efficiency. Your bills show what you are actually paying. Your property information helps provide context.
Put those pieces together and you start to build a much clearer picture of your home.
How much does it cost to run a home in the UK?
There is no single amount that applies to every UK household. Costs vary according to the property, location, tenure, household, energy usage and the services or charges that apply. Working from your own bills and statements will usually give you a more useful figure than relying only on a national average.
What bills should I include when calculating the cost of my home?
Start with the costs directly connected to your home that apply to you. These might include rent or mortgage payments, Council Tax, energy, water, broadband, relevant insurance, service charges and other regular property-related costs.
How do I calculate my monthly home running costs?
Gather your home-related costs and convert them to monthly figures. Divide annual costs by 12 and quarterly costs by three. For bills that fluctuate, looking at several months or a full year can provide a more representative monthly average.
Why are my home running costs increasing?
There can be many reasons. Prices or tariffs may have changed, your usage may be different, a contract or discount may have ended, or something about your household or property may have changed. Comparing current and previous bills can help you identify where the increase has come from.