Taking into account the cost of mortgage and rent payments, energy and water bills, home insurance, broadband and council tax, London is the most expensive place in the country to run a home, with average bills standing at £11,536 a year, according to analysis from Moneysupermarket.

The capital is closely followed by the South East, where the average annual running cost is £11,317. The North of England and South Wales are the cheapest places to live, with bills coming in at £8,521 and £8,540 respectively. However, Cheshire bucks the Northern trend with the average annual cost of running a home coming in at of £10,031.

UK mortgage and rent payments represent the largest expenditure for everyone. In London the cost of housing is typically around £7,164 per year. In South Wales and the north where it costs £3,000 less to rent or pay a mortgage. Annual mortgage and rent bills are £4,908 and £4,452 respectively in these areas.

Council tax is the second biggest financial commitment. The South East (£2,492), Yorkshire (£2,548) and Cheshire (£2,516) have the highest Council tax bills, while the North of Scotland has the lowest (£1,421). Water bills average £489 across the UK per year, but householders in the South West pay almost double that, with average bills totalling £811.

Although it is the cheapest place to live in the UK, North Scotland is the most expensive area for energy bills, with average gas and electricity costs of £1,383 per year. Those in the East Midlands pay the least, with average bills of £1,297, compared to the national average of £1,344 per year.

Home insurance costs an average of £186 a year, but this cost is higher in London (£280) and Cheshire (£245). Those in the South East pay the least, with annual premiums of £120 on average.

The cost of broadband varies by up to £45 from one region to another.

Clare Francis, editor-in-chief at MoneySuperMarket.com said:

“Even though it comes as no surprise that London is the most expensive area in the UK to live, what is perhaps surprising is the marked differences in the bills you pay depending on whereabouts in the country you live. With the exception of Cheshire, anyone living or looking to move anywhere south of the Midlands will find they are being hit hardest when it comes to essential bills.

“Those looking to buy their first home or who are looking to relocate should take action if they want to make their money go further. Working out monthly outgoings and budgeting is crucial, as is seeking out the best deal on all essential household expenditure to ensure you’re not paying over the odds for bills.”