Single earner in Leeds on the national average wage spends 88% of salary on running a home every month

The real cost of running the average-sized UK home has been revealed today by leading home insurers MORE TH>N which for the second year has published its Cost of Running a Home report. Running a home sucks up a whopping 83% of total monthly income for earning the national average wage homeowners (81% for renters), leaving just £347 spare each month for every other living expense. The costs for an average three bedroom home remain unaffordable for national average wage earners as they exceed 100% of total earnings for 29% of homeowners and 25% renters. Taking expensive London3 out of the data, the report reveals the stark contrast in costs to live in a three bedroom home: Monthly CostsFirstSecondThirdCheapest - home owners£813.51 – Neath Port Talbot£856.27 Antrim,£861.48 Derry/LondonderryMost expensive – home owners£2236.18 Cambridge£2082.68 Stratford-Upon-Avon£2059.99 WorthingCheapest – renters£841.18 Omagh, NI£880.36 Derry/Londonderry£890.10 Antrim, NIMost expensive – renters£2157.93 Oxford,£2141.20 Croydon£1924.82 Cambridge So whilst an average wage earner living in Neath Port Talbot would have just over £1,000 disposable income each month (£1005.14) this contrasts sharply with someone trying to rent the same size home but falling short in Oxford (-£339.28), Croydon (-£322.55) and Cambridge (-106.17). Graham Nicholls, head of home insurance, MORE TH>N comments; “The report looks at average homes and average costs. Just as last year, it’s clear that most people are financially stretched putting a roof over their heads and paying their bills – spending most of their income before buying other regular necessities such as food, commuting, petrol or insurance. “With so little slack in the budget, it’s easy to imagine how one financial disaster could prove to be the tipping point and we would encourage homeowners and renters to protect their home and possessions to guard against unexpected bills. Having the right insurance in place, at the same time, keeping up with the wear and tear on your home, will prevent bigger bills down the road.” The Association of British Insurers reports that one third of UK households do not have buildings insurance and one quarter do not have contents insurance – putting millions of households at risk for a large unexpected bill. Nicholls: “The insurance industry pays out over £8m a day for household claims but the cost of protection in terms of buildings and contents insurance is affordable – we offer a combined five star product from an annual cost of £834.” The MORE TH>N Cost of Running a Home Report (CORAH) was compiled independently and the results show significant variations in the costs of running the same sized homes in 72 towns across the UK, contrasting the cost of average household bills plus payments for rent or a mortgage. The report reveals an average price fall of 7% for those who own and 6% for those who rent when contrasted with 2016, but this statistical average masks strong regional differences. The 2017 report shows for 71% of people in the UK it’s cheaper to run a home if you own the property, rather than rent. The East Midlands is the only region in the UK where it is always cheaper to own than to rent any sized property, whereas in Greater London it’s only cheaper to own for 23% of homeowners. There are 29 towns across the UK where, irrespective of property size, owners spend less on their total bills than renters: Aberdeen, Antrim, Belfast, Birmingham, Boston, Bradford, Burnley, Carlisle, Exeter, Glasgow, Glossop, Leeds, Leicester, Liverpool, Manchester, Neath Port Talbot, Newcastle, Northampton, Nottingham, Paisley, Perth, Peterborough, Plymouth, Richmond, Scarborough, Sheffield, Stoke-on-Trent, Taunton and Welton. Overall 89% of all homes, regardless of size, generate bills that are in excess of half of the mortgage or rent payment.