Study reveals the upfront costs of buying a home in the UK
The upfront costs of getting on the property ladder in London can reach as much as £125,195 while in Bradford it is only £24,895, new research has found.
Overall the UK average upfront cost is £38,777, over a quarter of the average property price with buyers often underestimating the real cost of buying a home, according to the study from TotallyMoney.
It says that while deposits, mortgage payments, and estate agent fees are obvious, the other costs can be hidden, such as house surveys, packing materials, or even just fixing cracks and that they could cost up to nearly £1,500, and along with other additional fees, can represent 40% of the total upfront cost.
It points out that while stamp duty is no longer payable on homes under £125,000, aimed at keeping costs down for first time buyers, if they are buying in places like London and the South East where prices are much higher the amount could come as a shock.
It also says that fixing leaks, cracks, and rewiring electrics, small faults with a property that are easy to overlook when buying, the cost can add up. It suggests that with average costs of £120 and £60 for leaks and cracks, and as much as £2,750 for rewiring electrics, it can be a real shock.
And it adds that even if you don’t want a full building survey, a home buyer’s report can identify a lot of potential issues with a property but it’ll still cost £786 on average and then there are solicitor costs which can reach between £850 and £1,500.
Bradford has the cheapest average property prices across the country at an average of £135,489, and the upfront costs come in at only £24,895 while in Sunderland the average price is £146,202 with upfront costs of £26,556.
London, at the other end of the scale, not only has a £693,143 average property price but upfront costs of £125,195, the most expensive.
‘Buying your first home is an exciting step in your life, but it’s also an expensive one and often more expensive than you initially estimate. We conducted this research to help first time buyers make sure they are aware of all potential costs before they have to pay them,’ said Joe Gardiner, TotallyMoney’s head of brand and communications.