The annual cost of home ownership in the West Midlands is £14,381 – up more than 12 per cent in 12 months.
Estate agent comparison site GetAgent.co.uk has found that it isn’t just the cost of homes that are increasing – it’s also the amount of money you need to cover the costs of living.
It said while the cost of buying a home – including stamp duty, the average mortgage deposit at 15% of a property’s value, the average valuation and surveys costs and the average conveyancing fee – rose by 8.8 per cent to £36,774 between June 2020 and June 2021, the costs of running a home outstripped that.
This compares to the national average, where homebuyers in England face an average bill of £46,366, 9.9 per cent higher than just a year ago – an increase of £4,158.
When GetAgent analysed the annual cost of homeownership, based on the average mortgage repayment, the cost of council tax, the average energy bill, the cost of water and sewage and a maintenance budget at one per cent of a property’s value, it found West Midlanders facing an average bill of £14,831.
This compares to £12,814 in June 2020, making a 12.2 per cent rise – the third highest in the country.
This biggest cost increase is in Yorkshire and the Humber, where owning a home is now 17.3 per cent more expensive than it was a year ago. The North West came in second with a rise of 14.8 per cent. In the South West, home owners are facing 11.7 per cent increases, while in the East Midlands annual costs are now 11.4 per cent higher. In the North East, homeowners faced a 11.3 per cent rise.
Colby Short, founder and CEO of GetAgent.co.uk, said: “We all know how hard it is to secure that first foot on the property ladder. With house prices booming as a result of the Stamp Duty holiday, this task is now even more difficult, with an increase of nearly £4,200 from last year.
“However, what we often fail to consider when buying a new home is the ongoing costs of actually owning one. While mortgage rates are currently favourable, an increase is inevitable. Many will face far higher monthly repayments if they aren’t benefiting from a fixed rate.
“Then there’s the increasing costs of council tax and utilities, as well as the money required to maintain a home. The sum of these factors equate to a pretty hefty cost of more than £18,000 a year on the average home. That’s an increase of nearly £2,000 in the last year alone.”
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