What are the most common household bills?
Whether you're a first‑time buyer or simply new to managing your own home, it's important to understand the main household bills you’ll need to budget for. Most people are familiar with some of these costs, but there are several essentials that first‑time buyers often overlook. Here are the most common household bills you’ll need to consider when running your new home:
Building Insurance
Building insurance covers the cost of repairing structural damage to your home caused by events like storms, fires or floods. It’s important to know that most mortgage lenders require buildings insurance, so it’s not an optional extra.
Mortgage Repayments
If you're buying with a mortgage, you’ll have a monthly repayment to factor into your budget. The amount you pay depends on:
- How much you borrow
- Your mortgage term
- Your interest rate
- The type of mortgage you choose
These costs can vary, so it’s helpful to learn more about mortgage types and how repayments work.
Gas and Electricity Bills
These bills cover the cost of heating your home and powering your appliances. Most people pay by direct debit monthly, quarterly or annually. Before buying a home, you can check the Energy Performance Certificate (EPC) to get an idea of how energy‑efficient the property is and what your future energy bills might look like.
Water Bills
Your water bill includes both the water you use and wastewater (sewerage) services. Costs vary depending on where you live, your water provider and whether your home has a water meter, which can affect how much you pay based on usage.
Contents Insurance
Contents insurance isn’t mandatory, but it’s highly recommended. It covers the cost of replacing your personal belongings if they’re stolen, lost, or damaged inside your home.
Council Tax
Every property is placed into a council tax band from A (lowest) to H (highest), which determines how much you pay yearly or monthly. Your developer, agent or seller should be able to tell you your band, or you can check it online.
*If you live alone, you may be eligible for a 25% single‑occupier discount.
TV Licence
A TV licence is required if you watch or record live TV on any channel or use BBC iPlayer. Even if you don’t watch BBC channels, you must still hold a licence if you watch live TV at all.