Bills you need to pay when you move out – Millennial Money
In this week's millennial money episode, Damien and I discuss all of the bills you need to account for before you move out. It is vital you know exactly what you will be expected to pay before taking the step to rent or buy your first home.
The bills discussed in this article are estimations and based on a couple moving in together for the first time.
1. Rent or Mortgage
An average rent or mortgage payment across the country is about £700 per month, (this will obviously vary depending on the area so could be substantially more or less).
2. Gas and Electric
Gas and electric bills can vary month by month but the average cost per 2 person household is around £100 per month.
Water bills can be paid monthly, 6 monthly or annually depending on how you set up your account with your provider. Most providers charge for both water and sewage however in some areas you will have two bills from separate companies (one for water and one for sewage).
On average, water and waste bills are around £40 per month.
You will need to pay for contents insurance once you move out and depending whether you own the property, you may need to purchase buildings insurance as well. Home insurance ensures the valuables inside your home are protected in the event they are broken, stolen or damaged in a fire. Buildings insurance covers your property in the event that it is damaged through fire etc. Buildings and contents insurance typically comes in at £30 per month.
Life insurance is for those people who are particularly buying a house as it will ensure the other person you live with is able to continue to pay the mortgage should you die. Not everyone takes out life insurance but it is worth considering if you own a property or if you have a family. The budget for this is around £20 - £30 per month.
The average monthly cost for internet is £25 per month. Most companies insist you get a landline to have broadband as well although some companies now offer broadband-only policies.
6. TV licence
If you watch live television you need to have a TV license. This typically comes in at £155 a year which can be paid monthly at £12.92.
Your food bill will vary significantly depending on what you eat, the size of your household and where you shop. On average, a two-person household would need to budget around £200 a month.
8. Council tax
Council tax depends on the value of your property and the council tax band that it is in. You can look up the council tax bands and prices online to find out the cost you can expect before you move out. The average council tax bill is £150 per month.
9. Personal bills
When you move out you still need to factor in the bills that you pay now whilst still living at home. For example:
- Car finance
- Car tax
- Car Insurance
- Credit card/loan payments
- Phone bill
- Film/TV subscription
- Music subscription
- Going out
- Clothes shopping
It is also important to remember the upfront fees and costs that are associated with moving out, such as solicitors fees, deposits, estate agency fees, stamp duty etc.
Based on the above average bill estimations for a 2 person household you can expect to pay at least £1277.92 per month not including the personal bills you may already pay.
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