Hidden costs in first time home buying

THE UPFRONT COSTS FOR FIRST-TIME HOME BUYERS SOARS UP TO £76,742

• New data reveals the hidden costs in first-home buying in the UK.
• First-time buyers can expect to pay an average of £35,839 in hidden costs, with costs soaring to £46,844 in the East and £76,742 in London.
• Research was carried out in a bid to raise awareness of the hidden costs of first-home buying and the importance of mortgage life insurance.

Life insurance broker, LifeSearch, have revealed the minimum savings first-time buyers in the UK will need to take into account when deciding whether to make the move onto the property ladder. 

The research took the average costs of solicitor/conveyance fees, surveyor fees, average furniture price, leasehold cost, stamp duty fees, removal van fees and the deposit into account.

THE AVERAGE UPFRONT COSTS BY REGION

 

The findings highlighted that first-time buyers in the UK can expect to pay an average of £35,839 in hidden costs, with these costs soaring to £46,844 in the East of England and £76,742 in London. 

The North East of England had the lowest average cost, at £22,387, closely followed by Yorkshire and Humber, at £27,434 and the North West, at £28,066. 

Average costs increase in the Midlands, to £31,048 in the East Midlands and £32,046 in the West Midlands. In the south, average hidden costs jump up to £39,727 in the South West and £46,844 in the South East.

This data was highlighted by insurance broker, LifeSearch, in a bid to highlight the importance of mortgage life insurance, especially during times of financial uncertainty brought on by the cost of living crisis. You can read LifeSearch’s First-Time Home Buying Guide here, where FAQs on first-home buying are answered and average prices are explored. 

Emma Walker, from LifeSearch, commented: “Buying your first home should be an exciting time in your life, and not a time to be worrying about hidden costs along the way.
A home is probably one of the biggest financial commitments you’ll ever make, so it makes sense to insure it, especially in times of such financial uncertainty. Cover such as mortgage life insurance is recommended when buying a home as it will take the financial strain off your family should the worst happen.”

ENDS

Media contact
Amanda Ayres
amanda.ayres@wearenorth.uk

Data Collection

Average house price - www.ons.gov.uk/economy/inflationandpriceindices/bulletins then go to /housepriceindex/july2022
Furniture - www.ikea.com/gb/en & www.argos.co.uk - Essential/priority furniture only. Cheapest option for each piece of furniture used. 
Deposit - If individuals put a 10% deposit down 
Solicitor fees - www.comparemymove.com/advice/buying-a-home/solicitor-fees-when-buying - The UK average price used for all regions
Stamp Duty - www.moneysavingexpert.com/mortgages/stamp-duty
Removal Van Fees - www.comparemymove.com/advice/removals/planning/removal-company-cost - The UK average price used for all regions
Leasehold charges - www.propertyinvestortoday.co.uk/breaking-news/2021/4/majority-of-leasehold-homeowners-consider-service-charges-unfair-research-finds
Survey fees - hoa.org.uk/advice/guides-for-homeowners/i-am-buying/how-much-does-a-house-survey-cost - Survey 1 only and the middle of the amount (e.g. 300-500 is 400)

About LifeSearch
Over nearly 23 years, LifeSearch have grown into the UK’s biggest life insurance specialist, offering expert, independent advice to customers around life insurance, critical illness cover, income protection, family income benefit, serious illness cover and business insurance. Over our two-plus-decades, LifeSearch has picked up dozens of awards for company culture, expertise and customer service. We have a TrustPilot score of 4.9 out of 5 (excellent) and came Top #3 in our debut appearance on the Sunday Times’ list of Best Places to Work in the UK – www.lifesearch.com