Ongoing owners' expenses
This content applies to England only.
Housing laws vary between England and Scotland. Get advice relating to Scotland
Home owners have regular financial responsibilities on top of their mortgage and insurance costs, which can be expensive.
Moving expenses
Even if you have friends or family to help, you may need to hire a van or a removal company to move your possessions into your new home. Hiring a van and dealing with the move yourself may cost as little as £100, but on average you can expect to pay at least £600 if you need to hire a removal company.
Maintenance, repairs and improvements
As a home owner, you will need to pay for repairs and maintenance to keep your home in good condition. Minor repairs can be relatively cheap and you may be able to do some of the work yourself, but some problems (such as repairs to a roof or a heating system) can be very expensive. Some repairs may be covered by buildings insurance (and may be the freeholder's responsibility if you buy a leasehold property), but most will not.
Household bills and council tax
You may need to set aside money for final bills at your old address and/or connection charges in your new home.
Your household bills (gas, electricity, water) may be more than you are used to paying if the property you buy is larger than your previous home or is not well insulated. Some bills are quarterly and others are paid once a year. You can usually arrange to pay bills monthly and it may work out cheaper if you pay by direct debit.
You will also have to pay council tax. You will get a bill once a year, but can arrange to pay it monthly if you prefer. You will get a 25 per cent discount if you live alone. You don't have to pay council tax if you are a student. If you are on benefits, you can apply for council tax benefit to pay for it. You will also have to pay for all your regular living expenses, and these can have a big impact on your finances.
Leaseholders' expenses
If you buy a leasehold property, you will have to pay ground rent (a charge for using the land your home is built on) to the freeholder. Ground rents are usually quite low, but it's still important to pay or your freeholder may be able to take you to court to get the money you owe. You may also have to pay:
- service charges (for maintenance and repairs to shared areas of the building)
- contributions to a sinking fund or reserve fund for major repairs
- management fees (for arranging repairs and maintenance).
You normally have to pay these once a year. They can vary from year to year and could be very expensive if major repairs are needed.
You may also decide to extend your lease or buy the freehold. How much this costs varies from one property to another. It could be very expensive, especially if you live in an area where property prices are high or your lease is coming to an end.
