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The cost of moving in
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The cost of moving in - £3 billion

First-time buyers face an unexpectedly large bill when they cross the threshold of their new home.

As if first-time buyers didn't have it hard enough already; after suffering years of rising prices making it ever harder to get on the property ladder, new research has revealed that they are forking out almost £3 billion a year just to move into their first home.

This extra expense goes on items such as legal bills, tax, removals and basic furnishings. It comes to about £6,000 per buyer and with half a million first-time buyers joining the property market each year the total reaches that scary £3 billion figure.

The amount they have to spend on these extras comes as a surprise to most first-time buyers. In fact, almost nine in 10 admit they underestimate the amount needed to cover costs on top of the actual property price.

The study, conducted for insurer Norwich Union, among almost 900 first-time buyers revealed that while 94 per cent set a strict budget when embarking on the hunt for their first home, a quarter end up going over budget – with the average overspend being more than £10,000.

But this doesn't come as a surprise to the nation's estate agents. The insurer spoke to 250 estate agents and eight out of 10 said that first timers always underestimate the costs associated with buying a property.

And a quarter of all agents admit dealing with first time buyers is frustrating and time consuming (the survey did not mention what the buyers thought of estate agents).

Phil Spencer, expert house finder and presenter of Channel Four's Location, Location, Location, says it's not unusual for new buyers to dwell on property prices and neglect these hidden extras.

"It's easy for them to get fixated on property prices and overlook the cost of moving in," he says. "And yet, as the survey shows, these costs are often high and first-time buyers may end up having to borrow even more money on top of their mortgage.

"It pays to be prepared and well organised and I always encourage new buyers to consider every expense, investigate the various costs and set their budgets accordingly.


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Schedule of Articles

property investing
property refurbishment
buying overseas property
moving house
home letting
buy to let
home improvements

top 10 celebrity areas
6 up & comming areas
5 signs that an area is up & comming
city types yearn for the country in town
your place in the sun
equity release
planning permissions & extensions
estate agents
rent or buy
buy to let
mortgage overpayment
mortgage endowments
mortgage protection
stamp duty
self build your home
electrical surveys
the cost of moving in
the perfect neighbourhood
council tax
house price league
good neighbours
stamp duty land tax
top 20 towns 2003
cut the cost of moving
interest rates
buying in scotland
dream homes
first time buyers
the worth of uk homes
bad estate agents
keeping up appearances
home improvements


Please note that articles on this site & any other 'planning-approval' related web site does not constitute professional advice. All articles are intended to provide a general view of many subjects. We suggest you to consult a solicitor before making any important decisions.  The author is not an expert in any given field.

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