Cost of living on a narrowboat

As the cost-of-living crisis continues to be a challenge in the UK, more people are looking for ways to save money on their monthly bills.

As a result, alternative living arrangements, such as living on a narrowboat, are becoming increasingly popular. It’s estimated that around 150,000 people are currently living off-grid in the UK—outside of traditional urban infrastructure—with approximately 15,000 of those living permanently on the UK waterways, many on narrowboats.

The financial returns can be significant. In fact, our research shows that on average, you could save around £1,600 per month living in an off-grid home.

More than this, though, living on a narrowboat can offer a more peaceful lifestyle. One that allows you to see the world at your own pace - all while avoiding the stress of rising mortgage rates and council tax.

Many people will think this sounds like heaven. So, if you were to live on a narrowboat, what costs would you need to consider?
Here, we outline the general costs of living on a narrowboat full-time and how much you could save on a monthly basis compared to a traditional home.

How much does it cost to live on a narrowboat?

Using the latest industry data and a survey of Insure4Boats policyholders, we have broken down the typical monthly costs of living on a narrowboat.

Buying a narrowboat

The average cost of buying a narrowboat is £57,000 – Although this is more than the average house deposit, you can still make some substantial savings in the long run by choosing to live off grid. Most buyers either save up to pay this lump sum in one go or take out a narrowboat mortgage and pay it back in instalments.

Boat licence

In order to use your boat on UK canals and rivers, you’ll need to licence it. The Canal & River Trust looks after waterways across England and Wales, with Waterways Ireland its counterpart in Northern Ireland and Scottish Canals in Scotland. Much like road tax for a car, your long-term licence will go towards maintaining the waterways. You’ll need to ensure you have appropriate boat insurance in place first to apply for a licence and a Boat Safety Certificate (BSS), which is like a boat version of a vehicle MOT.

From April 2025, a Canal & River Trust Licence for a typical narrowboat will cost around £106 a month.

Insurance

Narrowboat insurance is a requirement to apply for a boat licence. Whether you’re a seasoned narrowboater or a beginner, getting protection with specialist narrowboat insurance is worth considering.

Through Insure4Boats, you can protect your narrowboat against theft, accidental damage and malicious damage. You can also benefit from £3 million Third Party Liability insurance as standard. Narrowboat insurance policies through Insure4Boats can also come with a range of optional extras, including contents insurance. It’s nice and easy to add to your policy and you’re not required to list every item that you have onboard.

Fuel

Narrowboats typically run on diesel. The amount you use will depend on many factors, including the boat's size and how much you travel in it. Separate fuel sources will usually come into play for cooking, heating and running appliances. Many narrowboaters take advantage of solar energy for these purposes, but coal and wood are still popular choices.

You can check out our complete guide to narrowboat fuel for more details.

• The average cost for diesel is around £60 per month.
• The average cost for other fuel including coal is around £25 per month.
• The average cost for firewood is around £90 per month.

Mooring

There are two main options for mooring your narrowboat. You'll either pay for a mooring or choose to be a "continuous cruiser", meaning you don't have a fixed location and are constantly on the move. Both have pros and cons, but the latter means you'll save on a permanent mooring cost, usually payable to the Canal & River Trust, its equivalent, or a private owner if mooring in a marina.

Permanent mooring costs can vary between waterways. Our survey found the average UK bill to be around £300 per month, which includes visitor mooring costs that may also be needed throughout the year. Usually, this cost will also include your running water bill. Permanent mooring costs can increase significantly in built-up areas such as London.

Maintenance

Like a house or car, narrowboat maintenance should be carried out regularly to keep it running smoothly. This will include tasks such as inspecting the engine, painting, checking for leaks, and blacking the hull. Research shows that the average cost of maintenance is around £52 per month.

General utilities

Of course, some bills are unlikely to differ from those of a traditional home. We have listed these below with their average monthly costs.

• Broadband - £30.46
• TV licence - £14.54

This brings the total monthly cost of living on a narrowboat to £722.35.

Cost of living in a house

Now, let’s outline the current costs to live in a traditional home, by which we mean a house, flat, bungalow or any other “bricks and mortar” style dwelling, for which you are required to pay council tax. The below is an average taken across the entire UK.

This brings the total monthly expenditure of a typical rental household to £1,459.33 or £1,827.66 for homeowners. Therefore, living on board a narrowboat could save the average UK renter a whopping £736.98 monthly, increasing to £1,105.31 for the average UK homeowner.

When taken as an average of rental and mortgaged homes, this works out to a total monthly expenditure of £1,643.50, with a saving of £921.15.

Cost of living on a narrowboat vs a house: savings

Taking the average monthly cost to live on board a narrowboat and comparing it with that of a traditional household, we have broken down the average cost savings per month by choosing to live aboard permanently on a continuous cruising licence.

Living costs for a traditional home will naturally differ by region due to variations in house prices and council tax bands. We have factored these into our calculations below.

Overall, living on board a narrowboat full-time isn't for everyone. It takes hard work and comes with sacrifices such as a smaller living space and alternative living arrangements. However, the draw is undeniable when it comes to saving money on your monthly expenses. With so many more people taking the plunge and living off-grid, perhaps this will be the year you join them!