People living in the north of England pay £3,000 less per year on their household bills compared to those living in the south, according to a report by MoneySuperMarket.com.
The survey analysed the average cost of running a home, including mortgage and rent payments, water and energy bills, home insurance, broadband and council tax rates.
Unsurprisingly, London tops the list of most expensive places to live in the UK with average bills of £11,536 per year,followed by the South East (£11,317). The North of England and South Wales are the cheapest places with household running costs of £8,521 and £8,540 per year on average respectively.
Mortgage and rent payments are the biggest expenditure - the report says that for Londoners this is typically around £7,164 every year compared to South Wales (£4,908 ) and the north (£4,452).
The South East (£2,492), Yorkshire (£2,548) and Cheshire (£2,516) areas pay the most in council tax per year with North Scotland the cheapest area with average annual bills of £1,421.
Home insurance costs an average of £186 a year, though this figure is higher in London (£280) and Cheshire (£245). People in the South East pay the least, with annual premiums of £120 on average.
"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," said Clare Francis, editor-in-chief at MoneySuperMarket.com. "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."