Home Economics, a report by national charity Family Action and Lloyds Banking Group's Money for Life Programme, reveals that some families would consider cutting back on heating and food costs or going into credit card debt to furnish their homes.
Meanwhile, others are not spending any money at all on keeping their homes in good condition, and some families are struggling to afford essential items such as fridges and even beds.
When it comes to the costly business of moving house, 25% of Brits said that removal costs came as a financial shock, according to a YouGov survey of 2,338 adults. Some 23% said they were unprepared for the costs of buying new furniture, while 23% considered the cost of essential household items such as fridges, washing machines and cookers to be surprisingly expensive.
To pay for the cost of furnishing a new home 29% of Britons would consider going without new clothes, 17% would cut back on food spending and 13% would cut back on heating. Meanwhile, half of Brits polled said they would sacrifice a holiday so they could afford to furnish their new home.
The poll found that 25% of young cash strapped Brits aged 23 to 34 admitted that when faced with the financial stress of furnishing a new home they would consider using a credit card. Others admitted to borrowing from family and friends and using rent to own shops, which can charge high interest rates and can result in families paying far more than the cost of the original item had they bought it outright.
Lower income families were more than twice as likely to buy goods from a rent to own shop and pay back in instalments over several years than wealthier households, with 9% and 4% of these groups being willing to consider this respectively.
It's not just moving costs that are leaving people penniless, as millions of Britons admit struggling to keep their homes in good condition. In fact, in spite of the perceived home improvement boom, almost 60% of Brits claim the state of their homes had either worsened or stayed the same over the past five years, with one in 12 saying that they spent nothing at all on maintenance or household items over the past year.
Nevertheless, many Britons are still house proud and the pressure to keep up with the Joneses remains, with 38% saying they would be embarrassed if guests spotted an essential household item was broken.
Even when people do spend money on their home, many do so without the means to pay for it. Some 32%) of 24 to 35 year olds and 21% of all British adults feel they could not actually afford what they had spent on the general upkeep of their home in the last year. The report also highlights how some families struggle even to afford basic household goods such as beds and fridges.
‘Moving to a new home may be a life changing experience for some but it is also one which brings with it a range of unforeseen and unexpectedly high costs for many. We know that good homes are a key building block of a good family life but with the cost of everyday essentials rising faster than income and squeezing family budgets, it is hardly surprising that many people do not consider investment in maintenance and household furniture to be a spending priority,’ said David Holmes, Family Action chief executive.
Advice for those struggling includes asking the owner or tenant of the home you are moving into if they are interested in giving or selling any of their white goods or soft furnishings. Sometimes items will not fit into their new property and they may give you a good deal on them. This way you can save money not only on the items themselves but also on delivery and installation costs.
As removal costs can come as a big surprise people should get multiple price quotes from removal firms to find the best deal. It's also a good idea to visit your local supermarket and ask for free boxes and pack as much as you can yourself as removal firms usually charge extra for packing materials.
