Sarah is our insurance specialist, reporting the latest important developments in the industry.
**New research has found that the cost of owning and running a home is at the highest level since 2008. **
According to research conducted by Halifax bank, the average annual cost of owning and running a house is up by 1.4 per cent on March last year.
The research includes all costs such as mortgage payments (interest and capital repayments) council tax, utilities, insurance,maintenance, household appliances and toiletries.
Despite record low interest rates over the past year the cost of running a home has risen by £127.Reason being that electricity and gas prices have risen significantly over the year adding on average £68 more to the bill.
Overall, utility bills have risen by 19% (£237) since 2008 the biggest increase of any housing expenditure category. Housing maintenance and repair expenditure saw the next largest increase (17%).General maintenance costs make up £45 in the £127 annual increase.
But there's more bad news as the latest inflation report shows that energy prices are expected to rise.The Bank of England predicts gas prices could increase by 15 percent and electricity by 10 percent causing energy bills to hit £1,279 a year.
This increase would mean households would have to budget for an extra £148 on their bills, following the other recent price hikes in March which added £63 onto the average energy bill. Electricity and gas bills' proportion of housing costs rose from 13% to 16% as a result of the 19% rise in such costs over the past three years.
London has the highest annual cost of running at home at £11,783 and the lowest is in the North East at £7,421. In relation to earnings the East of England has the highest ratio of 31 per cent.
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