First time buyers add £1.9 billion the economy

Around £270 million is generated through stamp duty

Click to follow
The Independent Online

In addition to the money spent on actually buying the property, first time buyers also spend on average another£8,000, says a report by Lloyds TSB. Adding together stamp duty, furnishings and moving costs, the total amount spent in 2012 was £1.9 billion.

The report breaks this down into an average of around £3,000 in legal fees, valuation fees and other costs. Then spending on household items including white goods, curtains and carpets plus home improvements comes in at £5,000.

During 2012, it is also estimated that first-time buyers generated £270 million in revenue for the Exchequer through stamp duty.

Lloyds TSB also say that first-time buyers supported 500,000 home moves in 2012, and these 'second-steppers' typically spend more on the costs of moving than first-time buyers (around £9,000 on average).

Marc Page, Lloyds TSB Mortgage Director, said: "There can be no doubt that first-time buyers have a significant economic impact. However, it has been a difficult time to take that first step on the ladder with many struggling to raise the required deposit."

Earlier this month, Halifax estimated the annual cost of owning and running a home had risen by £179 over the last 12 months, to £9,590. Total annual costs of owning and running a home are highest in London at £12,094, 26 per cent above the UK average and 52 per cent higher than in Northern Ireland which has the lowest costs.