• Postcode lottery revealed in London, with bills varying 39% from borough to borough
  • Kensington & Chelsea is the most expensive borough with bills across energy, home insurance and car insurance costing £3,228 per annum on average
  • Data reveals further pressure on the cost of living in London with 16% higher bills in the capital compared with rest of the UK

A new postcode lottery has emerged in London with household bills costing on average over £1,270 more in certain areas, according to comparethemarket.com. The analysis indicates that energy, household and car insurance bills can be more than 39% higher in the borough of Kensington & Chelsea than Merton, indicating a huge variation in the cost of bills depending on the borough in which you live.

Unsurprisingly, Kensington & Chelsea was by far the most costly borough for energy, home insurance and car insurance bills, with the average annual cost totalling £3,228. The high property values, combined with the area’s huge average income and energy consumption per household, have increased premiums far beyond that of other London boroughs.

However, the borough of Newham was the second most expensive with these bills costing an average of £2,860, despite the area having the lowest average income in London. This was primarily driven by extremely high car insurance premiums, with an average of over £1,380 in Newham; a result of the borough’s high level of motor crime, which is the highest in capital.

London Borough (ex. City of London)

Average total bill for energy, home insurance and car insurance

Rank

Kensington & Chelsea

£3,228

1

Newham

£2,860

2

Brent

£2,618

3

Haringey

£2,585

4

Westminster

£2,567

5

Waltham Forest

£2,564

6

Barnet

£2,530

7

Islington

£2,517

8

Hounslow

£2,494

9

Ealing

£2,478

10

Redbridge

£2,475

11

Hillingdon

£2,444

12

Croydon

£2,432

13

Hackney

£2,414

14

Enfield

£2,380

15

Barking & Dagenham

£2,357

16

Harrow

£2,341

17

Hammersmith &  Fulham

£2,334

18

Tower Hamlets

£2,315

19

Camden

£2,266

20

Havering

£2,257

21

Bromley

£2,217

22

Lambeth

£2,192

23

Southwark

£2,179

24

Greenwich

£2,167

25

Bexley

£2,135

26

Lewisham

£2,117

27

Richmond Upon Thames

£2,050

28

Sutton

£2,042

29

Kingston upon Thames

£2,019

30

Wandsworth

£1,976

31

Merton

£1,957

32

 

The research by comparethemarket.comalso revealed further pressure on the cost of living in the capital caused by high energy, home insurance and car insurance bills. The data shows that these are on average 16% more expensive in London than the rest of the UK. While energy bills were found to be 3% cheaper in London, home insurance and car insurance are 34% and 56% more expensive respectively.

Simon McCulloch, Director of Insurance, comparethemarket.com comments: This research further demonstrates the great divide in the cost of living between London and the rest of the country. With house prices continuing to rise and travel fares as high as they have ever been, this will be another blow to the average Londoner who continues to face increasing pressure on their finances.

“The research also shows the ‘postcode lottery’ effect in full force with a remarkable 39% difference in average bills between boroughs. With a £1,270 difference between areas, the cost of energy, home insurance and car insurance could begin to become a factor when people are deciding on where to move.”

Methodology

Data was sourced from comparethemarket.com

About comparethemarket.com

comparethemarket.com was launched in 2006 and has grown rapidly over the past nine years to become one of the UK’s leading price comparison websites. 

comparethemarket.com provides customers with an easy way to make the right choice for them on a wide range of products including motor, home, life, travel and pet insurance as well as utilities and money products such as, credit cards and loans.

comparethemarket.com actively selects its brand partners, working with the best and most trusted organisations to ensure quality service to consumers.

comparethemarket.com is a trading name of BISL Limited.  BISL Limited is authorised and regulated by the Financial Conduct Authority. Registered Address: Pegasus House, Bakewell Road, Orton Southgate, Peterborough, PE2 6YS. Registered in England number 3231094.