House Running Costs in the UK: What to Budget For

Homeowner checking a meter to budget household costs

House running costs are the bills and upkeep you pay to live in a property, on top of your mortgage and the one-off costs of buying. For most UK owner-occupiers that means council tax, energy, water, broadband, insurance and maintenance. One industry guide puts typical monthly running costs for owners at around £700, excluding mortgage and food, but your own figure depends heavily on the property, the council area and how you use it.

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Key points

Running costs are separate from your mortgage and from purchase costs such as Stamp Duty Land Tax, surveys and solicitor’s fees.
The big recurring items are council tax, energy, water, broadband, insurance and a maintenance fund.
Council tax and water vary by area, and energy varies by property efficiency and usage, so national averages are only a starting point.
Check the EPC, the council tax band and the actual bills of the current owner before you make an offer.
Build your budget from real quotes and meter readings, then add a buffer for repairs.

What counts as house running costs?
How much does it cost to run a house in the UK?
What will council tax cost you?
How much should you budget for energy bills?
What do water, broadband and insurance cost?
How much should you set aside for maintenance and repairs?
What extra costs apply to leasehold homes?
Why do running costs differ so much between homes?
What should a house running cost calculator include?
What is our view on running costs?
What if you are buying to let?
FAQ
Sources

What counts as house running costs?

Running costs are the regular and semi-regular expenses of keeping a home liveable. GOV.UK lists council tax, heating, water and broadband as costs that arise in addition to buying the home and paying the mortgage. Local authority guidance, such as that from Basingstoke and Deane Borough Council, also puts contents insurance and utility bills in this group, and treats buildings insurance, removals, furnishing and decorating as further costs of ownership.

It helps to keep three buckets apart:

Purchase costs (once): Stamp Duty Land Tax, surveys, solicitor’s or conveyancing fees, mortgage fees, search fees and Land Registry fees, all listed on GOV.UK as purchase costs.
Mortgage payments (monthly): the cost of borrowing, which depends on your deposit, rate and term.
Running costs (ongoing): the bills and upkeep covered in this guide.

Mixing these up is the most common reason first-time buyers feel their budget has been stretched after completion. If you want to model the first two buckets, our free mortgage calculator and Stamp Duty calculator will show monthly repayments and the tax due on your purchase.

How much does it cost to run a house in the UK?

There is no single official figure for the whole package, so it is best to add up the components. Here is a worked list using the most recent published numbers for each item. Treat it as a framework, not a quote.

Cost	Typical figure	Notes
Council tax	Average Band D in England £2,392 a year for 2026-27	Varies by band and council
Energy (gas and electricity)	£1,723 a year under the Ofgem price cap from 1 October 2026	Typical household, direct debit
Water and sewerage	£639 a year national average for 2026-27	Varies by water company
Buildings and contents insurance	About £375 a year combined	Industry guide average
Maintenance fund	Around 1% of home value a year	Rule of thumb, more for older homes

Sources for each figure are covered below. Broadband and TV are not in the table because the cost depends on the package you choose, so get a current quote for your postcode.

To see how the pieces add up, take the Band D council tax, the price cap and the average water bill. Those three alone come to £4,754 a year, or just under £400 a month, before insurance, broadband or any upkeep. That is why the industry guide’s owner figure of around £700 a month is a plausible planning number for a typical home, though it is a company estimate rather than an official statistic.

Older research gives a sense of the scale when mortgage payments are included. A 2016 report from MORE TH>N and RSA estimated annual running costs for an owned three-bedroom home at £19,608.25, including mortgage payments, but those figures are a decade old and should not be used for budgeting today.

What will council tax cost you?

Council tax is usually the largest fixed bill after the mortgage. The average Band D charge set by English local authorities for 2026-27 is £2,392, up £111 or 4.9% on the year before. The same release shows the average Band D is lower in London (£2,068) than in metropolitan areas (£2,409) or unitary areas (£2,490).

Two practical points for buyers:

Check the band, not just the average. Band D is a benchmark. A house in Band B costs less and one in Band F costs more, and the exact bill depends on the council.
Expect an annual rise. Councils set their charge every April, and most recent years have seen increases, so budget for the bill to grow rather than stay fixed.

Before offering, look up the band and the current year’s charge for the address on the local council’s website. If the band looks unusual compared with similar houses on the same road, ask your conveyancer whether it is worth querying.

How much should you budget for energy bills?

Energy depends on how big the home is, how well it holds heat and how many people live in it. Ofgem’s price cap sets the maximum a supplier can charge per unit, not a total bill. From 1 October 2026 the cap for a typical dual-fuel household paying by direct debit is £1,723 a year, and the cap is reviewed every quarter, so the figure will change during the year.

The typical-household number is a benchmark based on Ofgem’s definition of average use. A large, draughty detached house will cost more, and a small, well-insulated flat will cost less. Which? recommends using 12 months of actual meter readings, plus the unit rate and standing charge, for a more accurate estimate than a generic assumption. When you are buying, ask the seller whether they can share a year of bills.

Why does the EPC matter for running costs?

The Energy Performance Certificate rates a home from A to G and lists recommended improvements. A low rating is a signal that the property is likely to cost more to heat. The English Housing Survey found that owner-occupied homes below band C would cost an average of £8,579 each to bring up to at least band C, based on 2019 data. Costs will have moved since then, but it shows that upgrades can be a significant outlay.

We explain how to read the certificate in our guide to checking an EPC by address. Look at the recommendations and the estimated costs, then get your own quotes before treating any upgrade as part of your offer.

What do water, broadband and insurance cost?

Water. Water UK forecasts the national average bill at £639 for 2026-27, a rise of £33. Company averages differ widely: Northumbrian Water is listed at £535 and Southern Water at £759. Your bill also depends on whether the property has a water meter.

Annual water bills compared across three benchmarks

Broadband and TV. Prices depend on the package, contract length and what is available at the address. Check which providers can connect the property before you move, because speeds vary between streets, and remember the TV licence if you watch live television.

Insurance. Lenders will normally require buildings insurance, and contents cover protects your belongings. One industry guide puts combined buildings and contents cover at about £375 a year, though premiums depend on rebuild cost, location, flood exposure and claims history. Get quotes early, because a flood-risk or subsidence flag can raise the price noticeably.

How much should you set aside for maintenance and repairs?

Maintenance is the cost people underestimate most, because it arrives unevenly. Which? advises homeowners to budget for boiler servicing, electrical safety checks, decoration and larger renovation work, none of which is covered by the mortgage.

Engineer servicing a home's heating boiler

A common rule of thumb is to set aside about 1% of the home’s value each year, rising to 2% to 3% for older or period properties. On a £300,000 house, 1% is £3,000 a year, or £250 a month. It is a guide, not a law, but it gives you a number to start from.

Routine tasks to put in the diary include:

An annual boiler service.
Clearing gutters and checking downpipes.
Inspecting the roof for slipped or cracked tiles.
Checking seals, sealant and external paintwork.
Testing smoke and carbon monoxide alarms.

Big-ticket items need a separate pot. Checkatrade’s cost guide gives £7,000 to £16,250 for a new roof, which shows why a monthly fund matters. For smaller jobs, a small home repairs checklist is a good way to list what needs doing before you ask anyone for a quote.

New-build owners should not assume they are exempt. Guidance for new homes advises starting a maintenance fund straight away, even during the warranty period, to cover items the warranty does not and to prepare for costs once it ends.

What extra costs apply to leasehold homes?

If you buy a flat, or a leasehold house, there are further charges: ground rent, service charges and sometimes sinking fund contributions. These can change what a property really costs to run, and a flat with low council tax can still be expensive once service charges are added. Our guide to leasehold costs, ground rent and service charges explains what to ask for and what to check in the lease.

Why do running costs differ so much between homes?

Four things drive most of the variation:

Size. More rooms mean more to heat, insure and maintain.
Age and construction. Older and period properties tend to have lower EPC ratings and higher maintenance bills than newer homes, according to the industry guide.
Location. Council tax and water charges differ by area, and so do insurance premiums.
Tenure and occupants. Owners carry repairs and buildings insurance themselves. Renters usually do not, and household size changes energy and water use.

Two houses at the same asking price can therefore cost very different amounts to live in. That is worth bearing in mind when you decide what to offer, because a property that needs a new boiler, a roof repair or insulation is worth less to you than one with the same layout and a recent upgrade.

What should a house running cost calculator include?

A useful calculator does more than multiply a national average. Before you trust one, check that it:

Uses the property’s actual council tax band and local authority.
Lets you enter real energy usage, or at least uses the EPC rating and floor area.
Splits out water by company region.
Includes buildings and contents insurance.
Sets aside a maintenance allowance and says how it is worked out.
Shows its assumptions and the date of the figures.

If a tool gives one number with no assumptions, treat it as a rough guide. The best check is to compare its output against a real bill from the current owner, and against your own quotes.

Our free property calculators cover mortgage repayments, Stamp Duty and rental yield. If you are comparing a specific address, the full buyer report is £19.99 and includes council tax and estimated running costs alongside sold prices on the same road, crime and flood risk, and local schools. It is a data-led guide to what to offer, not a RICS valuation, a survey or financial advice, and the running cost figures are estimates. If you are looking at several homes, the Unlimited Homebuyer Membership is £39.99 per month.

What is our view on running costs?

We look at a lot of property data, and one pattern comes up repeatedly: buyers compare asking prices carefully and running costs barely at all. Two homes with similar sold-price evidence on the same road can differ by hundreds of pounds a month once council tax, energy efficiency, insurance and upkeep are counted.

Our advice is simple. First, decide your maximum monthly outlay, including running costs, not just the mortgage. Second, check the EPC, council tax band and flood risk before you fall in love with a house. Third, use any gaps you find as negotiation leverage: a poor EPC, an ageing roof or a high service charge are all legitimate reasons to offer less, provided you can point to comparable evidence and a quote. If you want to test your offer against the wider picture, our guide on how to tell if a house is overpriced walks through the checks.

— Rhys Hedges

What if you are buying to let?

Landlords have a different list. Running costs for an investment property include maintenance, insurance suited to lettings, void periods, management fees if you use an agent, and compliance work. Utility bills are usually the tenant’s responsibility, but you still carry council tax during voids. Always check that the rent covers all of this with a margin. Our rental yield calculator gives you a starting point, and you should stress-test it with a higher maintenance figure and a few empty weeks each year.

FAQ

What is the average cost of running a house in the UK?

There is no official single figure. An industry guide puts typical monthly costs for owners at around £700, excluding the mortgage and food, but that is an estimate. Building your own figure from council tax, energy, water, insurance and a maintenance fund is more reliable.

Are running costs included in my mortgage payment?

No. Your mortgage covers the loan and interest only. Council tax, energy, water, broadband, insurance and repairs are paid separately, and your lender will expect you to afford them alongside your repayments.

How much should I save for repairs each year?

A common rule of thumb is about 1% of the property’s value a year, or 2% to 3% for older and period homes. Treat it as a starting point and adjust it after a survey, which will show the condition of the roof, boiler and other major elements.

Do flats cost less to run than houses?

Often the energy and maintenance are lower, but not always. Service charges and ground rent can offset the savings, so ask for the last few years of service charge accounts before you offer.