FIRST-TIME buyers could be hit with nearly £30,000 in costs within the first three months of picking up their keys.
It comes as new home-owners are forced to shell out thousands on furniture, decorating, and essential appliances.
If you’re looking to become a first-time buyer, there are a host of additional costs you may have to considerA study of 1,000 adults who bought their first home in the past five years found those furnishing their space spent an average of £3,487 on the likes of sofas, coffee tables and beds.
While kitchen appliances – such as air fryers, coffee machines, and toasters – added another £2,662, and redecorating to suit their style came in at £2,118 on average.
Others spent just shy of £3,000 on home décor – filling their new property with items like plants, wall art, and rugs.
Those who hired a removal company forked out around £1,747 – and once the deal was done, many were faced with repairs, including electrical work (£1,914) and roof fixes (£1,759).
The research was commissioned by Skipton Building Society to mark the launch of its Delayed Start Mortgage – a new mortgage product which allows first-time buyers to delay repayments for the first three months, giving them breathing space to get settled into their new home.
Tayo Oguntonade, TV presenter, property and finance expert, said: “There are so many hidden costs that come with buying your first home, from legal fees to moving expenses, they can really add up.
“My top tip is to take the time to understand all the costs involved in the process.
“That way, you can turn unexpected expenses into expected ones, because when you’re fully informed, nothing can catch you off guard.”
The study also found 43 per cent of new homeowners struggled to afford their first mortgage repayment due to the avalanche of upfront costs.
Nearly two-thirds (63 per cent) said their finances were stretched to the limit, and 35 per cent were juggling costs for two properties, as rental agreements overlapped with moving in.
Four in 10 (43 per cent) found it difficult to line up their move with the end of their lease – with 26 per cent blaming delays in the buying process.
Jen Lloyd, head of mortgage products at Skipton Building Society, said: “Many first-time buyers are shocked by just how much they need to spend after collecting their keys – with costs quickly mounting into the tens of thousands.
“A lot are moving from furnished rentals or their parents’ homes, meaning they’re starting entirely from scratch when it comes to furniture, appliances and home essentials.
“With first-time buyers focussed on saving for a deposit to get onto the property ladder, which we know is already a major hurdle for many.
“These additional expenses can often come as a surprise and can be difficult to budget for on top of everything else – from solicitor fees to new utility bills and much more.
“The process of moving is already overwhelming, and the financial hit in those first few months can make what should be an exciting new chapter feel incredibly stressful.
“It’s clear that many buyers need more support and flexibility during this transition period.”
While 72 per cent expected some big costs during the transition, 26 per cent had to dip into savings they hadn’t planned to use.
One in five (19 per cent) resorted to credit, 17 per cent took on extra work or overtime, and 15 per cent borrowed from friends or family.
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The most surprising costs were solicitor fees (20 per cent), estate agent charges (19 per cent) and the price of furniture (18 per cent).
With 17 per cent being caught off guard by their new council tax bill, and 14 per cent were shocked by the cost of white goods.
In fact, 61 per cent of those polled via OnePoll said the financial blow took the shine off getting on the property ladder, and it took an average of eight months to recover financially.
Looking back, 71 per cent wish they’d known more about the true cost of buying a home – and 74 per cent called for greater support for first-time buyers as they navigate the early stages of homeownership.
Jen Lloyd added: “Big life moments like buying your first home should be a time of freedom and excitement – but for many, the financial strain makes it hard to enjoy this new chapter.
“With so many upfront costs, from essential repairs to furniture and fees, new homeowners can feel weighed down just as they’re finally getting their own place.
“While it’s encouraging many are preparing as best they can, the reality is these expenses still come as a shock.
“Buyers often find themselves scrambling to cover everything, whether that’s dipping into savings, using credit, or leaning on loved ones.
“We believe in fairness, that’s exactly why we’ve launched our new Delayed Start Mortgage – to give first-time buyers a fair start in their new home, and the breathing space they need in those critical first few months.”
AVERAGE COSTS FIRST TIME BUYERS MAY FACE THREE MONTHS AFTER MOVING IN:
1. Furniture (Sofa, chairs, tables etc.) – £3,4872. Kitchen appliances (Air fryer, kettle, toaster, etc.) – £2,6623. Home décor (plants, lamps, accessories) – £2,9114. Utility set-up – £2,1385. Removal company – £1,7476. Electrical work – £1,9147. Plumbing – £1,6848. Roof repairs – £1,7599. White goods – £2,48210. Carpets, flooring, tiling – £2,29111. Painting and decorating – £2,11812. Stamp duty – £2,26413. Surveys – £1,604
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home.
Help to Buy Isa – It’s a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there’s a maximum limit of £3,000 which is paid to your solicitor when you move. These accounts have now closed to new applicants but those who already hold one have until November 2029 to use it.
Help to Buy equity loan – The Government will lend you up to 20% of the home’s value – or 40% in London – after you’ve put down a 5% deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime Isa – This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25% on top.
Shared ownership – Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25% to 75% of the property but you’re restricted to specific ones.
Mortgage guarantee scheme – The scheme opens to new 95% mortgages from April 19 2021. Applicants can buy their first home with a 5% deposit, it’s eligible for homes up to £600,000.
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