The annual cost of home ownership is now £15,300 and is expected to rise sharply in future, according to new research from Legal & General Mortgage Club
By 2030, the annual cost of home ownership is expected to rise to £23,120.
This increase is likely to be driven by rising interest rates, with mortgage repayments expected to rise from an average of £8,000 in 2015 to a projected £13,000 in 2030
The average annual cost of renting is predicted to climb from £7,500 in 2015 to around £12,000 in 2030.
Repair and maintenance costs average £5,800 per household this year.
The findings form part of Legal & General’s ‘Home Truths’ research study, which looks at the future of UK households.
Jeremy Duncombe, director, Legal & General Mortgage Club said: “Streamlined stamp duty, low inflation and rock bottom interest rates have produced an exceedingly favourable market for homeowners.
“However, our research suggests that this trend is unlikely to last.
“The cost of homeownership is set to climb in the coming years in response to imminent interest rate rises, and a projected increase in repair and maintenance costs.
“This increased expenditure is likely to have an effect on household budgets, and it is therefore important that people factor this into their finances so that they are able to cope when costs increase.”