First-time buyers face average £38,353 cost to get onto property ladder – The Intermediary
The average cost of buying a first home now stands at £38,353, with deposits accounting for almost 89% of the upfront expense and removal costs rising by 42.8% over the last year.
The average cost of buying a first home in the UK has reached £38,353, highlighting the significant financial barriers facing aspiring homeowners beyond the purchase price itself, according to new research from Lyons Bowe Solicitors.
The analysis examined the key costs associated with purchasing a first property, including deposits, mortgage repayments, conveyancing, surveys and removals. It found that the average first-time buyer deposit now stands at £33,937, based on a typical 15% deposit requirement, accounting for 88.5% of the total upfront cost of buying a home.
While first-time buyers purchasing below the current Stamp Duty threshold in England and Northern Ireland avoid paying SDLT, a number of associated costs continue to place pressure on affordability. The research found that removal costs have seen the sharpest increase, rising by 42.8% over the last year to an average of £1,312.
The cost of financing a home purchase also remains significant, with the average first monthly mortgage repayment now standing at £1,068. Meanwhile, the average cost of a home survey has increased by 1.1% to £597 and conveyancing costs have risen by 4% to £1,439, although legal fees account for just 3.8% of the overall cost of purchasing a first home.
Regional differences remain stark. In London, the average upfront cost of buying a first home is estimated at £83,181. The capital’s higher property prices mean first-time buyers require an average deposit of £69,486, while average first monthly mortgage repayments reach £2,186. London buyers also face an average Stamp Duty bill of £8,161, representing almost 10% of the total cost of purchasing a home.
Paul Lyons, managing director at Lyons Bowe Solicitors, said: “While most first-time buyers focus on saving for a deposit, our research shows that the true cost of buying a home extends far beyond this.
“Although first-time buyers benefit from Stamp Duty relief in many parts of the country, a range of other costs continue to add up, and rising associated costs in particular have increased the overall financial commitment required.
“The picture is even more challenging in higher-value markets such as London, where buyers face upfront costs of more than £83,000 before they’ve even moved into their new home.
“Conveyancing remains one of the smallest costs involved in buying a property, accounting for less than 4% of the overall expense, yet it plays a vital role in protecting buyers throughout what is likely to be the biggest financial transaction of their lives. Securing experienced legal support can help avoid delays, identify potential issues early and provide peace of mind throughout the process.”
