Cost of running a home reaches highest level in four years The average amount of money it takes to maintain a household in the UK peaked at £9,393 in January, the highest total since January 2008 when the figure was £9,406. According to Halifax, a £218 rise in gas and electricity bills in the past year was the main reason for the hike in costs, followed by the rising price of home and garden tools, which amounted to an extra spend of £31 per househould. But in better news for homeowners, mortgage payments have fallen to an average £3,485, from £3,551 in 2011 and £4,521 in 2008. Mortgages remain the largest single component of housing expenses at 37 per cent of the total, with the second highest being fuel bills, 18 per cent, and the third council tax payments, 15 per cent. Martin Ellis, housing economist at Halifax, said: "The typical costs of owning and running a home has increased over the past year, returning the overall level to that of four years ago. This has happened despite the substantial fall in mortgage payments over recent years, as all the other costs associated with home ownership have risen. 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. The findings also revealed the total annual costs of owning and running a home are highest in London at an average £11,843, 52 per cent higher than in Northern Ireland, where the average costs are the lowest in the UK at £7,793.