In the midst of lower interest rates and lower house prices it may come as a surprise that owning and running a house is still more expensive than a decade ago.  In a recent study by the Bank of Scotland it revealed that the cost in Scotland of owning and running a house has risen to the highest level in a decade.  Since 2002 the cost has risen by 50 per cent.  The average yearly amount spent on house costs was recorded at £8,523 in January 2012.

Most people are keen to quickly move into their own property but are not prepared for the cost that will be involved to maintain that home.  Much of the increase in the cost of running a home is blamed on rising costs of utilities.  Gas and electric bills accounted for 92 per cent of the 3.1 per cent increase in running a house for just the past year.  The average utility bill increased £238 for the year of January 2011 to January 2012.  This overtook any savings homeowners found in paying less on their mortgage repayments which had declined by an average of only £58.

Nitesh Patel, housing economist with the Bank of Scotland, said, “The typical costs of owning and running a home in Scotland have increased over the past year, even though interest rates remain at a historic low.

“This has happened because the substantial fall in mortgage payments over recent years has been more than offset by increases in most of the other costs associated with home ownership.

“The prospect of declining consumer price inflation through much of 2012 may help the costs associated with running a home to ease as well, providing some welcome relief to homeowners.”