Two thirds of first-time buyers in London are spending £2,500 more than budgeted for associated fees and costs.
The average first-time buyer budgets just over £3,300 but 66% spend more than that according to property expert Barratt Homes.
On average they spend £2,566 (78%) more than planned, leaving them dishing out nearly £6,000 in total.
A third said they turned to parents to find the extra cash while a fifth borrowed from other family and friends.
Barratt Homes surveyed first-time buyers from the past five years and revealed the figures as it launched an online guide to help future purchasers budget better.
“We carried out this research to identify how first time buyers could benefit from more accessible advice and knowledge” said a Barratt spokesperson.
“To those looking to buy their first home, £2,500 can be a large amount of money, which is why we have launched our latest online guide, part of our ongoing commitment to help buyers budget better.”
It aims to make buyers more aware of the fees and costs they might not have thought of.
Valuation fees, survey fees and arrangement fees were the costs most often forgotten by London first timers, with 25% having been unaware of each.
They also under-valued valuation fees by £850 and broker fees by £800.
However 18% of savvy first-timers budgeted more than they needed by an average of almost £1,800.
Barratt’s spokesperson said this showed first-time buyers could afford the extra costs, but lacked the knowledge of where their money was most needed.
The firm said the fact 58% had used existing savings to cover additional costs was indicative of a first-time buyer with available savings, but without an understanding of what they needed to cover.
Almost all of the Londoners surveyed wished they had received additional advice related to the costs and 46% said they would’ve saved more if they had been more aware of the costs, while 28% would’ve purchased a smaller or newer home, which typically attracted lesser costs.
Barratt said as a homebuilder it felt a responsibilty to “continue to provide the best possible advice on what to expect when buying a home.”
For more information visit the online guide .
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