Experts have projected that the Bank of England (BoE) is set to raise interest rates by 0.5 percentage points next month. Largely due to persistent inflation, strong wage growth and the unexpected resilience of the UK’s economy, the central bank is due to raise interest rates from the current level of 3.5 per cent. This is set to further impact homeowners, especially given that the Office of National Statistics (ONS) recently revealed that 1.4 million fixed-rate deals are set to expire this year. Over 750,000 households are at risk of defaulting on their mortgages over the next two years, according to The Financial Conduct Authority (FCA), with the regulator also revealing that more than 200,000 households have already fallen behind on payments in June 2022.

The volatility of the housing market, coupled with the impacts of the cost-of-living crisis and soaring energy costs, is already taking a financial toll on Brits. A new survey found that the number of people defaulting on credit cards and unsecured credit loans increased in the fourth quarter of 2022 – and is expected to climb higher this year. Livlet – the UK’s first intelligent home management platform – understands that home management can be expensive, particularly in a period of widespread economic uncertainty. In light of this, the experts at Livlet have outlined seven ways to reduce costs around the home.

Embrace ‘quick fix’ savings:
Making quick fixes around the home can bring costs down right away, especially since energy prices are putting increasing pressure on households. For instance, if your radiators do not have thermostatic radiator valves, you could save around 18% on your bills by installing and using valves at a cost of around £30 each (excluding labour costs). If you’re currently spending £90 a month on your energy bill, you could save as much as £194 annually.

Draught-proofing can save energy and money:
Installing major insulation can be beneficial for your bills and the environment – however, it can also be expensive. An easier and cheaper substitute is DIY draught-proofing windows and doors. This can be done on a budget and can save around £38 a year at current gas prices.

Change your shower heads and taps:
Changing your shower heads and taps can significantly reduce your water usage and heating bills. For example, swapping a 141/min flow rate shower head to an 81/min flow rate one in a household with ten showers of around five minutes each, per week, could reduce gas and water costs by £48 and £49 a year, respectively.

Always lower the heating when you’re out:
This seems like a simple rule, but it’s easy to forget to lower the heating in your home when you’re not in. Most homes are set to 19-23 degrees celsius – this should be reduced to 16 degrees celsius when you’re out. If you don’t have smart heating controls that communicate with your boiler, it will continue to use gas to heat your house even when you’re away.

Prevention is cheaper than cure:
Preventative measures mean you can end up saving on costly emergency repairs further down the line. The annual cost to clean and check a boiler is around £100, while replacing a broken boiler is £4,000. Regular cleaning of your gutter costs around £100 while a leak can cost thousands. Cutting back already-overgrown trees can cost £1500 while an earlier prune is around £300. You can also save money (£25 a year – but every little adds up!) by keeping your appliances in good condition.

Keep track of regular bills and potential money-saving opportunities:

Regular bills mean small differences add up over time – as do the potential savings you could make. For example, if you are working from home and are making repairs, certain home improvement works might be tax-deductible allowing you to reclaim around £60.
Checking your utility and insurance contracts each year and having a look to see the cost of service you could get from competing providers is crucial in creating savings. Take a broadband contract for example, the difference in price between comparative services can be as much as £470 a year.

Don’t forget about the value of your property:
While all these tips will help with reducing the cost of your home and increasing its efficiency, they will also help to boost the value of your property in the long run. Small steps to maintain the upkeep of your home, such as taking care of the roofing and gutters have a big impact on building surveys and the property’s price should you eventually decide to sell. It pays to pay attention to your home.

Dasha Klyachko, CEO and Founder of Livlet, explains why adding value to your home starts with efficient home management:
“By connecting and understanding data about our homes, we can save time, money and effort while moving towards a more sustainable future. Automating document filing, uploading bills and storing warranty information is a huge help. Imagine instantly having access to information about the lifespan and repair history of the boiler, how to reach the contractor who installed the oven, or when the gutters were last cleaned out.

“Now technology can go even further. By creating a digital picture of our homes and how we use them, it’s possible to predict what maintenance will be required or to anticipate potential system failures, as well as provide a financial overview of the home; where we spend the most money and how we can make savings, which can ultimately help with adding as much value to the property as possible during such a tough economic landscape.”