Hidden costs of moving house

18 May 2004
One in three first time buyers are failing to factor the "unseen costs" of buying when purchasing a house, a new survey claims.

According to a new Yorkshire Bank study of house buyers nationwide, 34 per cent of recent first time buyers in the UK are vastly underestimating the real costs of purchasing their first home.

On average, a first time buyer will have to spend an extra £3,155 when moving home, on top of a deposit and mortgage. This figure includes an average £1,380 in stamp duty, £500 in legal fees, £870 on a survey and £400 in house removal fees or van hire.

Gary Lumby, head of personal finance services at Yorkshire Bank, said: "Worryingly first-time-buyers are feeling so pressurised to secure a foothold on the property ladder that they are inadvertently getting themselves into more debt.

"Moving house is stressful enough without the burden of debts coming out of the blue."

According to the bank's research, four out of ten prospective first time buyers currently face choosing between saving for a deposit and risking house prices rising still higher, or taking out a 100 per cent mortgage.