First-time house buyers 'overspend by £6,000'

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The Independent Online

First-time buyers pay almost £6,000 on top of the cost of their new home when moving, according to a survey published yesterday.

An average of £5,919 was spent on stamp duty, legal fees, removal vans and basic furnishings.

The costs were a shock to 90 per cent of new buyers surveyed by Norwich Union. While 94 per cent of people said they had started out with a strict budget, a quarter admitted that they overspent by about £10,000.

But 80 per cent of estate agents said first-time buyers always under-estimated the costs associated with buying a home. Almost a quarter said that dealing with first-time buyers was frustrating.

Phil Spencer, presenter of Channel 4's property programme, Location, Location, Location, said: "It's easy for them [first-time buyers] to get fixated on property prices and overlook the cost of moving in."

Nearly half of people trying to take their first step on the property ladder said that they had to lower their expectations once they started looking for properties. But 48 per cent said that once they had found the right house, they made up their mind to buy it within five minutes of walking through the front door.