The annual cost of running a household in Ireland has been revealed

It’s risen by 3% in the last 12 months.

The annual cost of owning and maintaining a family home in Ireland is now €16,169.15, according to figures issued by AA Home Insurance. That figure, which equates to approximately 43% of the current average Irish national wage, was arrived at after the AA’s detailed calculation of the cost of owning a house and subsequently running one in Ireland, something which AA Ireland carries out an annual basis. Mortgage and property tax are calculated based on the current average property price, while all other expenditure – from broadband to heating, to the cost of domestic appliances – is researched and calculated according to prices as of October 2017. The 3% increase in the cost of running a home comes following a rise in the national average price of a second-hand home in Ireland from €215,000 in the third quarter of last year to €228,000 in the third quarter of 2017. Those who took out a 90 percent mortgage this year, for example, are likely to pay €9,866.02 per annum – an increase of 4.48% on last year. The survey also accounts for the so-called ‘negative equity’ generation, referring to homeowners who purchased their home at the height of the boom. Assuming the house was bought in 2007, that group currently pays €5,172.74 more on their mortgage repayments than their counterparts who purchased their homes in the second quarter of this year. As can be seen in the graph below, the average homeowner is likely to spend €1,246.83 on maintenance and repair, €707.75 on heating and €875.81 on electricity. The average annual cost of insurance, meanwhile, is estimated to be €547.81, telephone and broadband bills cost €468.66, household appliances set a homeowner back €573.82 in a year, while the cost of household cleaning products and domestic refuse collection is estimated to be €281.85 and €304.51 respectively. “The big story for 2017 has been rising house prices and increased difficulty for those trying to get on the property ladder this year,” said Conor Faughnan, AA Director of Consumer Affairs. "However, for those fortunate enough to already own a home, 2017 hasn’t seen any major increases across the range of bills an average homeowner will face. “For new buyers. the concern is that house prices are going up, especially in Dublin. However, one thing this piece of research does demonstrate is the effectiveness of shopping around. Across all the bills we factor into this study you’ll see considerable variations between competitors. Spend a little time on the research and it can certainly save you money.” “Across all the factors that the AA measured home heating costs saw the largest jump, an unfortunate piece of news for homeowners as we move into the winter season,” Faughnan added. “However, when you weigh up every cost a homeowner faces there has only been a relatively modest increase this year but unfortunately this largely applied to the post-purchasing costs. Getting a foot in the front door remains a challenge for many as a result of continued increases in house prices.”