Business Property & Mortgages

Monday 15 September 2014

Property levy adds €300 to cost of running a household

Sam Griffin

Published 28/10/2013 | 01:55

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Phil Hogan: his ministry's tax raised average costs by 2pc

THE property tax contributed significantly to a €300 increase in the cost of running a home this year.

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The cost of owning and running an average Irish home is now €15,655.49, marking a 2pc increase on the 2012 figure of €15,348.52.

The total cost of running a home now equates to almost half (44pc) of the average annual wage, which stands at €36,012.

The newly calculated figure was worked out using a mortgage of 92pc of the average house price of €170,000.

It also factors in heating, insurance, phone and broadband charges and things such as kitchen appliances, the TV licence and bin charges.

The calculations show a huge increase in property tax as it moves from the introductory flat rate of €100 to a six-month charge based on the property valuation.

And that figure of €315 will double next year, as the tax is charged for a full year.

BROADBAND

Phone and broadband packages increased from €357 to €419, while gas prices rose by an average of €90 per annum this year. But electricity bills hardly changed at all in 2013, with only a marginal decrease of €18 for the average usage of about 5,300 kWh.

House insurance costs have fallen by 3pc in 2013.

This follows increased competitiveness in the industry, while household appliance costs have plummeted by 24pc.

AA Home Insurance also found that bin charges had dropped by 9pc on average, costing €264, but they remain a significant expenditure – although they can vary depending on location.

"Each of the items that we pay for are familiar.

"But when you add them all up, it is small wonder that so many households are struggling financially," said Conor Faughnan, AA Director of Consumer Affairs.

Irish Independent

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