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The £3,000 North-South living divide

12th June 2014 Print

Households in the north of England pay £3,000 less per year on their household bills compared to those living in the south, according to recent analysis by MoneySuperMarket.com.
 
The comparison site looked at the average cost of running a home, taking into account essential bills including mortgage and rent payments, water and energy bills, home insurance, broadband and council tax rates.
 
The analysis shows the size of the North / South divide and unsurprisingly identifies London as the most expensive place to live in the UK with average bills standing at a staggering £11,536 per year. This is followed closely by the South East where the average annual cost of running a home is £11,317. By contrast, the North of England and South Wales are the cheapest places in the UK to live with household running costs of £8,521 and £8,540 per year on average respectively – £3,000 less than Londoners. Not all areas of the north benefit by lower living costs however: Cheshire bucks the trend where it costs an average of £10,031 per year to run a home.
 
Annual outgoings
 
The cost of owning and running a home varies massively by area when breaking down the cost of essential bills. Mortgage and rent payments are naturally the biggest expenditure for people, and for Londoners this is typically around £7,164 per year. That is a stark contrast to those living in South Wales and the north where it costs people £3,000 less to keep a roof over their heads. Annual mortgage and rent bills are £4,908 and £4,452 respectively in these areas.
 
Council tax is the second biggest essential bill with the research showing that the South East (£2,492), Yorkshire (£2,548) and Cheshire (£2,516) areas pay the most per year with North Scotland proving the cheapest area with average annual bills of £1,421 – this is £1,253 less than the south.
 
Water bills average £489 across the UK per year, but householders in the South West pay almost double that, with average bills totalling £811.**
 
Despite being the cheapest place to live in the UK, North Scotland is the most expensive area for energy bills, with average gas and electricity costs of £1,383 per year. By comparison, the East Midlands pay the least, with average bills of £1,297, compared to the national average of £1,344 per year.
 
The average annual cost of home insurance and broadband are also factored in to the  calculations of running a home. Home insurance costs an average of £186 a year, but this cost is higher in London (£280) and Cheshire (£245).  Those in the South East pay the least, with annual premiums of £120 on average. In addition, the cost of a typical broadband deal varies by up to £45 from one region to another.
 
Clare Francis, editor-in-chief at MoneySuperMarket.com said: “Even though it comes as no surprise that London is the most expensive area in the UK to live, what is perhaps surprising is the marked differences in the bills you pay depending on whereabouts in the country you live. With the exception of Cheshire, anyone living or looking to move anywhere south of the Midlands will find they are being hit hardest when it comes to essential bills.
 
“Those looking to buy their first home or who are looking to relocate should take action if they want to make their money go further. Working out monthly outgoings and budgeting is crucial, as is seeking out the best deal on all essential household expenditure to ensure you’re not paying over the odds for bills.”
 
MoneySuperMarket’s Home Bill Checkertool helps people identify what they should be paying for energy, broadband and home insurance by using postcode data to analyse average neighbourhood bills. You can refine quotes by specifying how many rooms you have, the value of your contents and your age. The average saving using the Home Bill Checker is £650. Visit, moneysupermarket.com/home-bill-checker/