The annual cost of home ownership is set to reach £15,300 in 2015, according to Legal & General.
The insurer added that the annual cost is expected to grow further to £23,120 by 2030.
These findings form part of Legal & General’s Home Truths research study, which looks at the future of UK households.
Mortgage repayments are also expected to rise from an average of £8,000 in 2015 to a projected £13,000 in 2030. This is compared to the average annual cost of renting, which is predicted to climb from £7,500 in 2015 to around £12,000 in 2030.
“Streamlined stamp duty, low inflation and rock bottom interest rates have produced an exceedingly favourable market for homeowners; however, our research suggests that this trend is unlikely to last,’ said Jeremy Duncombe, director of Legal & General Mortgage Club.
“The cost of homeownership is set to climb in the coming years in response to imminent interest rate rises, and a projected increase in repair and maintenance costs. This increased expenditure is likely to have an effect on household budgets, and it is therefore important that people factor this into their finances so that they are able to cope when costs increase.
“The best way to prepare for the future is to speak to a mortgage broker, who can provide guidance on how to make the most of current rates, and also advise on how increasing costs will impact borrowers in the future. Ensuring that individuals are on the most economical rate available to them can bring greater financial stability in the future.
“Brokers are best placed to guide borrowers towards the best products for their specific circumstances, and also advise them on ways in which they can protect themselves from the impact that increasing costs may have on them in the future.”
