The annual cost of owning and maintaining a family home has risen by over €1,000 a year, with the average homeowner now spending over €17,000 on their home.
This is according to the latest “Cost of Running a Home” analysis from AA Home Insurance.
Research from the insurance intermediary has found that the cost of running a home in Ireland this year came to €17,393.25, up from last year’s figure of €16,374.45.
The AA’s study looks at the total cost of owning and running a house one in Ireland and it said this year’s increase follows a rise in the national average price of a second-hand home in Ireland.
Values increased from €243,000 during the third quarter of last year to €269,000 in the third quarter of this year.
The hike in the cost of buying a home has caused a significant increase in mortgage repayment costs, the main driver behind the increase in home ownership costs.
Maintenance, repair and contingency funds is the second single most expensive bill for Irish householders and has increased by 0.7% on 2017, according to the AA.
The group estimated that the average homeowner is likely to spend or set aside €1,264.35 each year to keep up with wear and tear.
The AA said its latest findings means that the cost of owning and maintaining a home equates to about 43.4% of the current average Irish national wage.
Conor Faughnan, AA Director of Consumer Affairs, said that while we are still significantly off the peaks seen during the Celtic Tiger, house prices have continued to surge in the past 12 months.
“In fact, the increase in monthly mortgage repayments almost single-handedly accounts for the over €1,000 increase in home running costs that we have seen this year,” Mr Faughnan said.
“The good news is that many of the other increases seen in home running costs are offset by drops in the cost of electricity and broadband/tv charges, meaning if you were fortunate enough to purchase your home when prices were lower, your financial situation is largely unchanged,” he added.
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