The true yearly cost of owning a home, beyond the mortgage

When you're saving for a house, the mortgage is the number everyone talks about. Can you get the loan? What will the monthly repayment be? Will the rate go up when your fix ends?

The mortgage is only part of the story, though. Once you have the keys, you're responsible for a long list of bills and upkeep costs that a landlord might have covered before, or that you simply never thought about. For a typical UK home, these costs easily add up to several thousand pounds a year, and they tend to rise every year, whatever happens to interest rates.

In this guide, we break down the real yearly running costs of owning a home, show how much they add up to, and explain how your home's age and condition can push the numbers up or down.

Council tax

Council tax is usually the biggest household bill after the mortgage, and it keeps rising. For 2026/27, the average Band D bill is £2,392 in England (up 4.9%) and £2,283 in Wales (up 5.2%).

What you actually pay depends on your property's band and your local council. It can be much higher or lower than the average, and two similar homes a few miles apart can have very different bills if they fall under different councils. Before you make an offer, check the band on the gov.uk website. If you live alone, remember to claim the 25% single person discount.

If you think your home is in the wrong band, you can ask for it to be reviewed. Be careful, though: bands can go up as well as down, so compare your home with similar properties on your street first.

Energy bills

From 1 October 2026, Ofgem's price cap for a typical dual fuel household paying by direct debit is £1,723 a year, up £60 on the previous quarter.

The price cap is based on average usage, and your home's efficiency has a big effect on what you'll really pay. An older, draughty home with a low EPC rating can cost far more to heat than a well-insulated new build of the same size. Check the EPC before you buy so you're not caught out. It gives you an estimate of running costs and a list of recommended improvements.

Water and sewerage

The average combined water and sewerage bill in England and Wales is £639 for 2026/27, up £33 on last year. Bills vary a lot by region and by whether you have a meter. A water meter often saves money for smaller households, so it's worth looking into.

Home insurance

If you have a mortgage, your lender will require buildings insurance. Contents cover is optional but sensible. According to the ABI, in Q1 2026 the average cost was:

• £375 for combined buildings and contents
• £306 for buildings only
• £117 for contents only

Your premium depends on your home's age, construction, location, flood and subsidence risk, and claims history. We've covered those in more detail in our posts on our How Much Does Home Insurance Cost blog post.

Maintenance and repairs

This is the cost most new homeowners underestimate. A common rule of thumb is to set aside around 1% of your home's value each year for maintenance. On a £270,000 home, that's roughly £2,700 a year.

Some years you'll spend very little. Other years, the boiler gives up, the roof starts leaking or the windows need replacing, and one job can cost several thousand pounds. The key is to treat maintenance as a regular cost you save for, rather than a surprise. You can use our app and have your very own maintenance checklist in your hands, within minutes.

Common costs to plan for:

• Annual boiler service: usually around £80–£120, and often required to keep the warranty valid
• Gutter clearing and roof checks: best done every autumn to prevent water damage
• Redecorating, flooring and fixtures: these wear out gradually and add up over time
• Big-ticket replacements: a new boiler, roof, windows or rewiring

How your home's age and condition change the numbers

The 1% rule is a starting point, not a promise. Two homes with the same price can have very different running costs depending on when they were built and how well they've been looked after.

Older homes (especially pre-1919 properties) often have solid walls, original timber windows, older roofs and wiring that may need updating. They're more expensive to heat, and repairs often need specialist trades and materials. Many owners of older homes find that 2–3% a year is closer to reality.

Post-war and 1960s–80s homes can come with their own issues, such as flat roofs, early cavity wall insulation that has failed, or original double glazing at the end of its life.

New builds usually cost the least to run in the first few years, thanks to modern insulation, efficient boilers and warranties that cover major defects. However, snagging issues are common, and many new build estates charge an annual estate management fee for shared green spaces and roads, even on freehold homes.

The condition of the most expensive parts of a home matters most. A roof, boiler or set of windows that's near the end of its lifespan is a large bill waiting to happen. That's why it pays to find out how old they are before you buy.

The smaller bills that add up

• TV licence: £180 a year from April 2026
• Broadband: typically a few hundred pounds a year, depending on your package
• Home emergency cover: optional, but some people like the security for boiler breakdowns and burst pipes
• Garden upkeep: tools, fencing and tree work, which can matter for insurance
• Life insurance: not required, but many homeowners take out cover so the mortgage can be paid off if the worst happens

If you're buying a leasehold property

Flats and some houses are leasehold. On top of everything above, you may pay:

• Ground rent: banned on most new leases since 2022, but older leases may still charge it
• Service charges: cover shared areas, building insurance and maintenance, and can run to thousands of pounds a year
• Major works bills: one-off charges for jobs such as roof replacement or cladding work

Always ask to see the service charge history and any planned works before you commit.

Adding it all up

Here's a rough yearly budget for a typical freehold home in England, on top of your mortgage:

That's roughly £690 a month before you've made a single mortgage payment, and more if your home is older, larger or leasehold.

Don't forget the first year

Your first year in a new home is often the most expensive. On top of the regular running costs, many buyers find themselves paying for:

• Furniture, curtains, blinds and white goods that weren't included in the sale
• Fixing problems flagged in the survey, or ones that only show up after you move in
• Changing locks and upgrading security.
• Small DIY jobs, tools and decorating to make the place feel like yours

It's a good idea to keep a separate buffer for this period, rather than relying on your maintenance fund from day one.

How to keep costs down

• Know the home before you buy. The age of the roof, the boiler and the windows tells you what's coming. A house that looks like a bargain can quickly become expensive.
• Improve energy efficiency. Loft insulation, draught-proofing and better heating controls cut your bills every year.
• Shop around at renewal. Insurance and broadband loyalty rarely pays. Get quotes about three to four weeks before renewal.
• Build a repair fund. Put a fixed amount aside each month so a broken boiler becomes an inconvenience, not a crisis.
• Stay on top of small jobs. Clearing gutters, fixing a loose tile or resealing a bath is cheap. Leaving these jobs until they cause water damage isn't.
• Check for discounts and support. Council tax reductions, water social tariffs and energy efficiency grants can all help, depending on your circumstances.

Know what you're taking on

The mortgage gets you through the door, but the running costs decide whether a home is affordable to live in. Knowing a property's condition, energy performance and likely maintenance costs before you commit is the best way to avoid nasty surprises.

That's exactly what Planna helps with. Check your home's score to see what your property might cost you, beyond the mortgage.