Buyers are not setting aside enough money when they buy their first property, falling short when budgeting for costs such as stamp duty fees.
According to new research, a half of first-time buyers do not budget enough to meet the costs involved in climbing on to the property ladder.
The cost of valuation fees, survey fees, legal fees, broker fees and stamp duty were all underestimated by first-time buyers.
The study shows that not only do some first-time buyers not budget enough, but they also do not know what they should be budgeting for.
On average, first-time buyers spend £2,000 more than they anticipated.
However, more than 55% of first-time buyers say they would have been in a better position to pay these extra costs had they received more guidance and advice.
47% said they would have saved more if they had known the costs might have exceeded their expectations, while a smaller proportion – 19% – said they would have bought a smaller house had they known what the costs would amount to.
It is therefore vital first-time buyers get all the advice they need regarding costs, so that they can budget accordingly. A responsible estate agent should offer first-time buyers additional advice and guidance on all aspects of funding their purchase, but very few do.
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