Average monthly costs associated with a 2 bed flat?

Spiritseeker

Hi all,

I am looking to buy my first property and the only way I can realistcally afford one is by buying a 2 bed and renting out the second room. I'm trying to work out what I can afford with regards to the property price, monthly mortgage repayments and bills going out each month.

I know there are so very many varying factors out there, but is there any site or information that can give a good cross section of a very average figure of how much utility bills come to each month on a 2 bed property?I am thinking in term of electricity, water, gas, council tax, buildings insurance and any other sort of cost. I know it's a very variable figure, and changes depending on seasons, usage, etc etc. But for an average of everything, erring on the slightly more expensive side of things so as not to be over optimistic, can anyone help?

Also, as a landlord letting my second room out there, are there any costs incurred by doing that? I assume there will be some sort of liability insurance, but have not come up with much beyond that?

many thanks for any advice

dannymccann

Not sure you would be considered a 'landlord' if you live in the house where the room is being rented out. That person wouldnt be classed as a tenant, more a lodger I would think.

If you do go ahead with a lodger, you need to have a contract as there are plenty of horror stories about awful lodgers and nothing people can do about them.

poppysarah

If you've found some flats you like you can use the postcode and look up the council tax band online - VOA site and then the local authorities site

EPC in the HIP should indicate energy efficiency/costs

sarah_elton

As a rough guide, here's my monthly costs in my two bed flat (on top of mortgage):

Service charge: £68
Council tax: £115 (but does vary quite a bit between councils - a two bed flat should be a Band
Water: £40 (not metered - if I had a meter it would be less but they couldn't install one)
Electricity: £75 (average over the year - the quarterly bill is £100 in summer and over £300 in winter due to electric heating!)
TV license: £12
Sky TV/Phone/Broadband: £58

Contents insurance is about £100 a year. You don't need buildings insurance with a flat as the freeholder pays for that.

jimcoxell

sarah_elton wrote: »

You don't need buildings insurance with a flat as the freeholder pays for that.

Not strictly true. In most cases the freeholder aranges buildings insurance but then passes the costs onto the leaseholders

Squish_21

jimcoxell wrote: »

Not strictly true. In most cases the freeholder aranges buildings insurance but then passes the costs onto the leaseholders

Freeholder pays mine.

poppysarah

Rent a room scheme - look that one up.

myhooose

The energy certificate which seems to be avaliable when renting a flat, has an estimate for the heating and lighting costs.

sarah_elton

jimcoxell wrote: »

Not strictly true. In most cases the freeholder aranges buildings insurance but then passes the costs onto the leaseholders

True yes.

Generally, in a purpose built block the cost will be included in your service charge and should be shown in the management company accounts.

Freeholders in converted houses on the other hand tend to be a law unto themselves.

Either way, double check buildings insurance is included in your service charge if no one mentions it.

PasturesNew

That's odd. I did a big reply on here about half an hour ago and it's gone.... I know I did it, so either it's gone or I had two windows open and probably posted it into a bread recipe thread

To cut it short, I said: Service charge + council tax + £151