A huge chunk of London’s first-time buyers are blowing their property budget because they solely save for a deposit.
Around 70% admitted to underestimating the total costs of getting their foot onto the property ladder and 32% revealed they then needed to turn to parents to top up the difference in a recent study by Aviva.
The issue lies in other “essential” costs which crop up, according to the firm’s marketing director Heather Smith.
She said initial savings for a deposit, which amounted to £2,813.74 for those in the capital, were “just the first hurdle”.
“It’s the other essential costs such as solicitors’ fees and Stamp Duty that can be the sting in the tail – not forgetting any essential repairs, which might be needed once the keys have been handed over,” she said.
“First-time buyers face walking into a money pit if a first dream home turns out to be a nightmare.
“If the cash outlay needed to buy the house isn’t expensive enough, a hefty bill for unforeseen essential repairs is the last thing needed.
“Anyone looking to buy a home should investigate every nook and cranny of the property before putting in an offer and must not be afraid of asking for several viewings”.
Aviva’s report also highlighted 11% of Londoners spent more than 10 years saving for their first home.
Of these, more than half had relied on a loan from a parent or family friend, with others needing to take on a second job.
First-time buyers in Scotland are squirreling away the most compared to their percentage of income, while Londoners are said to actually require less cash to stump up.
Meanwhile, 60% of those surveyed said they had thought about abandoning their dreams of owning as they struggled to save.