Monthly home costs explained

Moving into your first rented or bought home? These are the regular costs on top of rent or mortgage. Each section says what the cost is, who pays, how you pay and whether it can change.

Check the costs for a real home

Council tax

What it is: A charge from your local council. It pays for local services like bin collections, street lights, libraries and schools.
Who pays: If you rent the whole home, you usually pay it. If each person has their own tenancy for a room, the landlord usually pays. If you buy, you pay.
How you pay: Usually in 10 monthly payments from April to January. You can ask your council to spread it over 12 months.
Can it change?: Yes. It goes up or down every April.

Bands

Every home has a band from A to H. Band A is the cheapest. The band depends on what the home was worth in 1991. The band is usually on the property advert. You can also check a band on GOV.UK.

Paying less

You live alone: you get 25% off. That's a quarter off.
Everyone is a full-time student: the home is usually exempt. You pay nothing.
Everyone except one person is a full-time student: you get 25% off.

There are other discounts. See council tax on GOV.UK or ask your council.

Electricity

What it is: Power for lights, sockets and appliances. In some homes it also heats the rooms and the water.
Who pays: You, unless your rent says bills are included.
How you pay: To an energy company. You can choose the company. Most people pay monthly by Direct Debit.
Can it change?: Yes. Prices change every 3 months. How much you use matters most.

Gas

What it is: Fuel for the boiler. The boiler heats your rooms and your water. Some homes cook with gas too.
Who pays: You, unless your rent says bills are included.
How you pay: Usually to the same company as your electricity, monthly.
Can it change?: Yes. Prices change every 3 months. You use more in winter.

Not every home has gas. Some are heated by electricity, a heat pump, oil or LPG.

Energy prices and the price cap

Electricity and gas bills have two parts:

Standing charge: a fixed amount for each day. You pay it even if you use nothing.
Unit rate: a price for each unit (kWh) you use.

The energy regulator, Ofgem, sets a price cap. It limits these prices on standard tariffs. It changes every 3 months.

Our energy figures come from the home's energy certificate (EPC). It rates homes from A, the most efficient, to G, the least. A lower rating usually means higher bills.

Water and sewerage

What it is: Clean water to your taps, and taking away used water. It is separate from council tax.
Who pays: You, unless your rent says bills are included.
How you pay: To the local water company. You can't choose the company. Most people pay monthly.
Can it change?: Usually every April.

A water meter means you pay for what you use. It can lower the bill if only a few people live there.

Rent and "bills included"

Some rents include bills. Read the advert and the tenancy carefully. "Bills included" can mean all of the costs on this page, or only some. Ask the landlord or agent exactly which bills are included.

If you share with others, agree how you'll split each bill before you move in.

Other costs to plan for

Broadband and phone. You choose the provider.
TV licence. You need one to watch live TV or use BBC iPlayer.
Contents insurance. It covers your own belongings.
Service charge and ground rent. Common for flats. The owner usually pays them. If you're buying a flat, ask what they cost.

Words you might see

Estimate: Our best figure from official data. It is not a bill.
Likely range: Where the real cost will probably be. Energy use varies from home to home.
Direct Debit: You let a company take payments from your bank account each month.
kWh: A unit of energy. Bills charge a price for each kWh.
Tenancy: The agreement between you and your landlord.

Check the costs for a real home