The True Cost of Homeownership: Beyond the Mortgage Payment

The Hidden Expenses Owning a home involves far more than mortgage repayments. First-time buyers often underestimate ongoing costs — insurance, taxes, utilities, maintenance — that can add 25–30% to total housing expenses annually.

Maintenance and Repairs

Experts recommend budgeting 1–3% of your home’s value each year for maintenance. That means £3,000 annually for a £300,000 property. From roof repairs to appliance replacements, preventive care is cheaper than neglect.

Property Taxes and Insurance

These vary by region but often rise annually. Home insurance protects against fire, theft, or damage, but optional add-ons like flood coverage can increase costs. Review policies yearly to avoid overpaying or being underinsured.

Utilities and Upgrades

Owning means paying for all utilities directly — including services once split in rentals (trash, water, maintenance). You’ll also face ongoing expenses for improvements that maintain property value, like repainting or landscaping.