Estate agent comparison site, GetAgent.co.uk, claims that after purchasing a property the average homebuyer pays £76,000 during the initial year. In some areas of the market, the price reaches up to £209,329.
The research shows the current average cost of a home is £315,965 in England. That makes the current cost of a 15% mortgage deposit £47,395.
The findings were gathered by analysing the current cost of homeownership. Various factors including mortgage deposit, stamp duty, monthly mortgage repayments, annual utility costs, and the average annual maintenance costs of owning a home were considered.
Further costs to consider
GetAgent breaks down the true cost of purchasing a home. The average stamp duty bill sits at £3,298, maintaining a home costs £3,160 per year, mortgage repayments total £19,029 per year, and basic utilities come in at £2,919 per year.
That makes the grand total of homeownership in the initial year following a property purchase £75,801.
How do costs vary across the country?
London is home to the highest initial cost of homeownership at county level. Buyers pay roughly £209,329 in the City of London and £139,787 across the wider area of Greater London.
With an annual cost of £100,395 during the first year of homeownership, the South East is the second most expensive region. Surrey ranked first place as the most expensive county in the region and the most expensive in England outside of London at £135,776
Other areas with some of the highest costs for homeownership include Buckinghamshire (£123,199), Hertfordshire (£117,499), and Oxfordshire (£109,662). While County Durham is home to the lowest cost of homeownership.
Chief executive officer and co-founder of GetAgent.co.uk, Colby Short, commented: “The high cost of homeownership is certainly nothing new but many homebuyers may be surprised at just how much a property will set them back during their initial year of homeownership.”
“A mortgage deposit remains by far the highest cost associated with a property purchase and the additional running costs such as utilities and maintenance can often be an afterthought. However, when you do take them into consideration, it gives you a far clearer picture of the financial commitment you are making and this is extremely important, particularly in the current market.”
“Many buyers are now feeling the squeeze where the cost of repaying their mortgage is concerned. When you also add the fact that running costs such as utility bills have also spiralled, those who have overstretched when borrowing are now in a very difficult spot.”
“So having a very clear view of both the immediate and ongoing costs of a property will safeguard you for times of economic instability and financial difficulty.”