The average cost of buying a first home has climbed to more than £38,000, with soaring removal costs adding to the financial pressures facing aspiring homeowners, new research suggests.
Analysis by Lyons Bowe found that first-time buyers now need an average of £38,353 to cover the upfront costs associated with purchasing a property, excluding the purchase price itself.
The biggest hurdle remains raising a deposit. Based on a typical 15% deposit requirement, first-time buyers now need an average deposit of £33,937, accounting for almost 89% of the total upfront cost.
While many buyers continue to benefit from first-time buyer Stamp Duty relief, a range of associated costs are continuing to rise.
REMOVAL COSTS
Removal costs have seen the sharpest increase, jumping by 42.8% over the last year to an average of £1,312 for a typical three-bedroom move.
The average first monthly mortgage payment now stands at £1,068, while conveyancing costs have risen by 4% to £1,439 and survey costs have edged up to £597.
The research highlights significant regional differences. London remains by far the most expensive place to buy a first home, with total upfront costs reaching £83,181.
In the capital, buyers require an average deposit of £69,486 and face average monthly mortgage repayments of £2,186. Unlike many buyers elsewhere, London purchasers also face an average Stamp Duty bill of £8,161.
CHALLENGING ENVIRONMENT
Paul Lyons (main picture, inset), Managing Director of Lyons Bowe Solicitors, says: “While most first-time buyers focus on saving for a deposit, our research shows that the true cost of buying a home extends far beyond this.
“Although first-time buyers benefit from stamp duty relief in many parts of the country, a range of other costs continue to add up, and rising associated costs in particular have increased the overall financial commitment required.
“The picture is even more challenging in higher-value markets such as London, where buyers face upfront costs of more than £83,000 before they’ve even moved into their new home.
“Conveyancing remains one of the smallest costs involved in buying a property, accounting for less than 4% of the overall expense, yet it plays a vital role in protecting buyers throughout what is likely to be the biggest financial transaction of their lives.
“Securing experienced legal support can help avoid delays, identify potential issues early and provide peace of mind throughout the process.”
