Home purchase costs revealed

A homeowner will have to pay over £11,000 in the first year after purchasing a property, it is claimed.

Figures from GE Money Lending have revealed that home purchase costs are equivalent to 30 per cent of a borrower’s annual income in the first year of owning a property.

With essential bills estimated to set an average UK homeowner back £3,500 each year, stamp duty fees also contribute an average of £1,200 while the cost of moving in an equipping a new property is estimated at £4,721.

GE Money Home Lending head of mortgage marketing Gerry Bell commented that consumers need to look beyond the financial burden of “getting on the ladder” and consider the additional expenses involved in purchasing a home.

However, on the finding that prospective borrowers over-budget for these costs by about 30 per cent, he added: “It is reassuring to see that despite rising interest rates and general market turbulence, borrowers appear to have such a realistic outlook.”

Meanwhile, recent financial turmoil in the markets, which has emerged after the US sub-prime mortgage crisis, is believed to stabilised house prices in London for the whole of next year, according to the Royal Institution of Chartered Surveyors as reported by the Times.

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First-time buyers going it alone

First-time buyers are becoming less dependent on their parents when it comes to getting onto the property ladder.

That is according to new research from Abbey, which shows that the number of us expecting help from our parents to put down a deposit has fallen.

Just 9.7 per cent of first-time buyers expect any financial help at all from their parents when it comes to purchasing a property, compared to 23 per cent six months ago.

Despite the move away from parents when it comes to securing your first mortgage, many people (45 per cent – unchanged in six months) still expect help from their parents when it comes to moving into their new home.

“The decline in the number of potential homeowners relying on their parents is a positive indication that first-time buyers are finding alternative ways of funding their homes,” said Nici Audhlam-Gardiner, head of mortgages at Abbey.

“However, despite the decline parents still have a large role to play. With one in ten people still requiring parental help to buy and over half still needing help on moving day, it’s not just the children that feel the financial burden of buying a home.”

The survey also found that the ideal home for those taking their first steps onto the property ladder is a country cottage, followed by a townhouse and a penthouse.

Tags: indication, financial burden, decline parents, Audhlam, number, home, First-time, deposit