First-time buyers received a shot in the arm following the Chancellor’s recent announcement that Stamp Duty on properties up to £250,000 will be suspended for those buying their first property this year and next.
With house-buyers focused on how much they can borrow for a mortgage and saving for a deposit, other essential costs such as the survey, solicitor fees, and even Stamp Duty tax are not always sufficiently accounted for.
One in 10 housebuyers estimate the extra house-buying costs won’t exceed £1,000, when in reality the conveyancing fees alone could cost this much. Furthermore, 4% admit it never even occurred to them there are any additional costs.
In order to cover the additional costs of housebuying, 41% say they will dive into their savings. Nearly a fifth plan to add these costs on to their mortgage.
Karen Barrett, chief executive of the professional advice website, said: “Buying a home is a huge financial commitment, and it is crucial for consumers to factor in all the additional costs involved in order to then calculate which price bracket they can afford.
“This involves thinking beyond your deposit and mortgage, and taking into account Stamp Duty tax, survey and solicitor fees, and other essential checks – not to mention how much you may need to spend on your home once you actually move in. The Chancellor may have given first-time buyers a boost by temporarily suspending Stamp Duty on house sales up to £250,000, but the other costs will still add up to a substantial amount which needs to budgeted for in order to avoid getting a nasty shock.”
