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The rise in cost of living - a homeowner's perspective

14 Oct 2022 | 1 minute read

We hear from Emma McCartney, Associate at the firm who has just returned from maternity leave, on what homeowners should be looking at while cost of living rises and many households look to cut back on spending.

What can homeowners be doing?

Whilst the number one way to reduce rising costs may be to use less energy, this isn't the only thing homeowners can be doing. There is talk about rewarding energy customers for not using energy at peak times and possibly reward them with benefits for using appliances at off-peak times. The detail of this scheme is yet to be seen.

Wasted heat

Reduce the money you lose on wasted heat – eliminate draughts around doors and floors by using draught excluders, keep the doors closed and the thermostat down!

Check

Check if you qualify for money towards replacing an old boiler, if you are a homeowner and are in receipt of certain benefit then you may qualify for a boiler grant.

Run searches

Running searches for cheaper deals on energy, mobile phone providers, broadband and insurances could help reduce the price you pay per month but be wary of changing provider if your deal is fixed, as there could be a penalty attached to ending your current deal early.

What is the Government doing?

The Government's support packages for homeowners trying to grapple with the cost-of-living increase is somewhat of a moving feast. However, at the time of writing the Government has already announced that:

Households in England, Wales and Scotland will receive a £400 energy grant. This should either be received as credit to your energy account or in vouchers for those on prepayment metres. The £400 payment is non-repayable so will directly help with energy bills during the colder months (the payment should be received from October);

Households in council tax bands A to D will get a £150 council tax rebate. This was due to be received by the end of September 2022, so please check that you have received this money, the sum should go directly into the homeowner's bank account.

If you are in receipt of the Winter Fuel Payment you will get an extra £300 during the winter months which is a 'top up' of the payment most pensioners receive.

My top three tips when looking to buy a next new home

Be realistic about what you can afford. Interest rates are likely to rise above what you may have originally fixed for at the outset of any mortgage and so it is important to make sure that you will be able to afford your monthly mortgage if rates rise alongside the cost of living.

Remember to make sure that thorough searches have been carried out on the property so that there are no nasty surprises once completion has taken place.

Make sure that you have adequate life insurance cover that will cover your mortgage should the unthinkable happen and equally ensure that you have a Will drawn up.

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