Nearly half of all household income is spent running the home, according to a new report which reveals the financial strain of paying household bills in the UK.

The average annual cost of household bills and mortgages for UK homes with three bedrooms is almost £20,000, the research found.

Monthly running costs for owners of three-bedroom homes are £1,634 on average, while renters pay £1,576 per month, according to a report carried out by home insurers More Than.

For households where two working adults take home the average yearly salary of £27,600, this means homeowners spend 45pc of post-tax earnings on household bills and mortgages.

For those who rent three-bedroom homes, that cost falls to 43pc of after-tax earnings.