If you’re looking to move into your first home, you may worry about the costs. Take a look at this list of house bills you can expect to pay when renting or owning and the average monthly cost for UK households.
What’s the average bill per month in the UK?
In 2025, the average renter paid £2,175 per month for all their household bills. For those with a mortgage, it decreased to £2,015. Of course, there are a lot of factors you need to consider when working out the costs.
What bills do I have to pay in my own home?
I hate to admit it, but it was quite a few years ago that I moved out of my parent’s house. Actually, if it weren’t for my dad pushing and my girlfriend (now wife) pulling, I would still be there.
Apart from doing my own washing, one of the biggest shocks was the sheer number of bills, something I had never considered when living with my folks. So below, I have included a handy list of costs to consider when you move into your new home.
And if you need help with budgeting and cutting costs, take a look at these handy tips from Porch.
List of major household bills in the UK
- Mortgage/rent
- Electricity and Gas
- Council Tax
- Water
- Home Insurance
- Food
- Broadband/phone
- TV licence
- TV subscription
But how much is the above likely to cost you?
Mortgage/rent
This is the most important bill to pay, as you will always need a roof over your head. It is also the most expensive monthly cost too. How much you have to pay varies greatly and depends on many factors, although the location and size of the home have the biggest impact.
For example, a one-bed flat in London will be of a similar price to a 3-bedroom house in other parts of the country.
Average mortgage payments are around £1,202, whilst average rent costs £1,362. Ok, so a mortgage sounds like a much cheaper option, but remember, this considers people near the end of their mortgage and who could be paying under £100 per month. And don’t forget that if you own a home, you have to pay all the repair costs.
Also worth reading
If you have a mortgage, take a look at this Sprive app review to see how you can pay it off sooner.
Electricity and gas
This is your 2nd biggest bill to consider thanks to recent events.
How much you will actually pay, again, depends on many different factors. Gas is generally cheaper to use when heating your home, so if your new house has some kind of electric heating system, your energy bills will probably be higher.
The energy efficiency of your home is also something not to be ignored. All homes sold must provide an energy performance certificate, which will tell you how energy efficient the house is and its potential. The better the rating, the cheaper it is to run.
There are plenty of changes you can make that will improve the efficiency of your home, some inexpensive, some far more costly. For example, you can
- Install a new energy-efficient boiler
- Switch to LED lighting
- Improve the insulation
- Install a smart thermostat
- Have solar panels installed
How you actually pay for your energy depends on the home’s setup. Some homes have pre-payment meters, so you must top them up in advance. These tend to be more expensive than standard meters; I would avoid them if you can. If your home does have a pre-payment meter, you can request your energy company to switch it.
If you have a standard meter, you can either pay quarterly when you receive a bill or you can set up a monthly direct debit. Energy companies tend to offer better deals for direct debit customers, although the downside is you could end up with the energy company owing you money by the end of the year. Or even worse, you owe them.
If you decide to pay monthly, and this is your first home, the energy company will estimate your annual usage. I would then suggest providing regular meter readings every month so you can keep a closer eye on your bills.
One company you should take a look at is Octopus Energy. They offer very competitive prices and will give you £50 credit for using a referral code when you join.
Try to be as economical as possible when using your energy – only use what you need. For example, if you have a separate hot water cylinder, it is cheaper to only turn your hot water on when needed.
The average monthly bill stands at £144.83 per month.
Council Tax
Shamefully, this is a bill I had never heard of until I moved into my new home. Council Tax is paid to your local authority and spent on services such as the police force, social care, housing and education. You can pay over 10 or 12 months, depending on your preference. 12 months means a cheaper monthly payment, but 10 means you get 2 months off at the end of the year.
How much you pay depends on 2 factors – the size of your home and the rate set by your council. Council Tax bands range from A – H, with A being the cheapest. You can visit the government website to check your property’s Council Tax band.
There are discounts available depending on your circumstances. For example, single occupants have a 25% reduction and full-time students are exempt. You may also be eligible for a discount if you are on a low income. Again, you can visit the government website to see if you qualify for a Council Tax discount.
Council Tax is another important bill to pay. If you miss a month’s payment, you may be required to pay for the full year immediately. And failure to pay can lead to court action, which may result in bailiffs coming to your house to remove goods and, in extreme circumstances, could end in jail.
The average cost for a Band D property is £2,171 or £180.92 per month.
Water
When I bought my first house, each home had a set annual cost for water (also known as a rateable value). But over the last 20 years or so, a large number of homes have had water meters installed. That means that you only pay for what you use.
Unlike electricity and gas, you can’t choose who provides your water, your location determines it. And where you’re situated also may be the difference between one and two bills. In some areas, you will receive one bill covering the supply and disposal of your wastewater, whilst in other areas, these bills are separate.
Most water companies will allow you to pay a monthly direct debit, or you can pay twice per year when you receive a bill.
The average annual bill for water and sewerage is £473 or £39.42 per month.
It’s always important to pay off all your bills but remember that water to your home is a basic right and it cannot be shut off.
If you find that your water bill is too high, there are plenty of ways to cut your water usage.
Home Insurance
Home insurance is broken into two sections – buildings and contents.
Buildings insurance covers the actual structure of your house. So if there should be major damage to your house or it should burn down, you’ll receive money to repair or rebuild.
If you rent your home, this isn’t something you need to worry about. However, if you own the house, then it is often a requirement of the mortgage company for you to have this cover. Even if it isn’t, it’s something you really should have.
Contents insurance covers your belongings. So if something should happen to your goods through a disaster such as a fire or theft, you can receive replacements.
Again, costs vary greatly depending on the insurance company, previous claims, where you live and numerous other reasons.
It is possible to lower costs. For example, you can remove accidental cover. Without this, if you put your foot through the TV or drill through a pipe, you can’t put in a claim.
You can also increase the amount of excess you pay. The excess is a certain figure you agree to contribute every time you make a claim. This reduces the risk to the insurance company that you’re going to put in multiple claims and reduces their costs too.
The average annual cost for combined insurance is £228 or £19 per month.
Food
This bill is worth keeping an eye on as it’s easy to get carried away. Supermarkets like Aldi and Lidl are great value but tend to have a limited choice against the likes of Sainsbury’s and Tesco. But your decision of where to shop may be limited depending on how close the stores are to you.
Take a list when you do your weekly shop and try not to get sucked into buying extra items you don’t need. There are receipt apps available that will either earn you cashback or give you free items.
Including takeaways and eating out, the average person spends £182 on food every month. That’s £390 for a couple or £682 for a family of four. Of course, batch cooking for a family can reduce this cost.
So, the above five bills are essential and need to be prioritised. Although important, the rest on this list can be left if money is very tight.
Broadband/phone
As technology develops, having a home phone line and broadband isn’t as essential as it was once. If your mobile phone has a 5G connection with a generous data limit, then that might be sufficient enough.
For most of us though, having broadband at home is standard. Obviously, the faster the package you want, the more it costs.
For a basic fibre package and line rental, expect to pay around £25 per month. Main providers such as Sky and BT will be the most expensive. You will also pay more if you opt for a package that allows free calls, but with most of us having that already with mobile phones, it’s something I avoid.
Don’t forget to use a cashback site when you join, as you can earn anything between £50 and £150 back.
TV licence
This is one of those non-essential/essential bills. No, you don’t have to have it, but for most of us, we do actually need it. Although the money goes to the BBC, if you watch any kind of live broadcast, you will need a licence.
You can apply for a TV licence here and either pay for the year or monthly. Currently, it costs £169.50 or £14.12 per month.
TV subscription
The last few years have seen a big change in TV watching. There are plenty of channels available on Freeview, but if you don’t fancy that, there are a variety of subscription services on offer, such as:
- Sky
- BT
- Amazon Video
- NowTV
- Netflix
- Disney Plus
Sky offers the best content range but is the most expensive. If you choose Sky, there are ways to get 50% off your bill.
Otherwise, you can get a subscription to Netflix for £4.99 and Disney for £7.99 per month. Don’t forget that if you have Amazon Prime, Video is included in your subscription.
You can see a complete list of cheaper alternatives to Sky.
Other costs
So the bills above relate to your home but don’t forget that depending on your circumstances, there are plenty of other ways to see your pay cheque disappear before your eyes. These can include:
- Mobile phone
- Gym membership
- Car ownership
- Travel costs
- Entertainment
- Health and beauty
- Life insurance
- Savings (always best to put some money away)
What is the average household bill per month in the UK for 2025?
- Mortgage/rent – £1,202/£1,362
- Electricity and Gas – £145
- Council Tax – £181
- Water – £39
- Home Insurance – £19
- Food – £390 (for a couple)
- Broadband/phone – £25
- TV licence – £14
So, considering all the above figures for essentials, expect to pay around £821.16 per month, plus either rent or mortgage.
That’s £2011.16 per month for renters or £1,574.16 for mortgage payers.
Compared to 2022, this is an increase of 14.67% for renters and 7.53% for mortgage payers.
How to track your spending
Make sure that you keep a close eye on your bills. As time goes by, you’ll find that most of them will increase and before you know it, you’re paying over £100 extra per month.
One way to track your bills is by keeping a simple spreadsheet. However, you do need to remember to actually update it. One useful tool I found to use is called ismybillfair. This will compare how much you pay on your bills compared to other households. Plus, it can help you to find better deals.