HOUSEHOLDERS are spending "a whopping £21,403 a year" on running their home, says an insurance company.

Average home running costs have soared by 18 per cent in the last year, according to a report by MORE TH>N.

The figures compare to £20,342 for renters and a 15 per cent rise.

Across the UK it is cheaper to own and run a one-bedroom property than it is to rent almost anywhere, says the insurer.

For a household where two adults earn the UK national average this means a total of 45 per cent of their joint salary is spent on household bills and a mortgage - or 43 per cent of earnings for those who rent and pay bills.

MORE TH>N's Cost of Running a Home report compared 72 towns across the UK including Barrow-in-Furness, Penrith and Carlisle.

It looked at the costs of running a three-bedroom home including mortgage or rent, utility bills, council tax, TV/phone/broadband, insurance, gardening and furnishings.

London's Westminster was the most expensive place to rent the average home (£7,044.10 per month) and to own (£12,578.53 per month).

The cheapest place to own was Antrim, Northern Ireland (£1,066 per month).

Robert Fairs, head of home insurance at MORE TH>N, said: "The report looks at the UK’s average homes and the associated costs, and it’s evident the picture has hardly changed over the last three years, with families remaining under pressure with rising costs, resulting in them still spending almost half of their income before paying for other regular necessities such as food, commuting, petrol or insurance.

“This means there is little room in the budget for unexpected costs - if something goes wrong within the house, residents have very little money to be able to cover these costs. This highlights the importance of not only having insurance to protect against unexpected losses, but also how staying on top of upkeep in the home is essential to prevent wear and tear and the costs associated with this further down the line.”