First-time buyers experienced on average two-month delays and incurred an additional £5,870 on average in costs as the homebuying process dragged on through lockdown periods and a restricted market.
Almost half of those surveyed had previously started the process of buying a house, only for it to fall through. And 50 per cent stated lockdown as the reason for the collapse.
For first-time buyers, the average cost of a house purchase falling though is £2,912, resulting in a total loss of £406,641,036 in the twelve-month period April 2020-March 2021.
Prospective first-time buyers also said they needed to delay their home buying plans by an average of 8.4 months due to the Covid-19 outbreak.
First-time buyers say the most costly expenses incurred include solicitor fees at £1,229, mortgage fees at £1,086 and conveyancing/valuation fees at £1,020.
Rent paid due to delays in moving came to £989 on average while estate agent and moving fees came in at £988 and £910 respectively.
Despite setbacks and delays, 85 per cent of prospective first-time buyers said owning a home is an important life goal. More than 60 per cent of first-time buyers are more motivated to buy, but the type of home they are looking to buy has changed since the start of the pandemic. Almost 70 per cent said they were reconsidering the type of property they wanted to purchase due to Covid-19.
Outdoor space is widely valued, with 66 per cent prioritising having a garden or balcony and 63 per cent wanting to be near the countryside or parks.
Furthermore, 62 per cent of new buyers said proximity to loved ones was an important consideration.
Having home office space and a good Wi-Fi connection have also become higher priorities.
Jon Cooper, head of mortgage distribution at Aldermore, said: “The Covid-19 pandemic has motivated a great number of people to buy their first home. It is important, alongside raising a deposit, to identify and factor in any additional costs, such as solicitor, valuation and estate agent fees, as well as moving costs, all of which can add up.
“Seeking advice from a financial adviser or broker will help greatly in making the process less confusing. Although buying a house has its challenges, the reward can be great, illustrated by the large number of first time buyers (84 per cent) who said the stress was worth it and that becoming a home owner has been extremely rewarding.”
