Cost of moving into first home nearly £15,000
– A quarter of new homeowners (25%) fully furnish their first home within a month of moving in
– First time buyers spend £4,617.81* on ‘home essentials’
The total cost includes stamp duty, which for one in four first time buyers is a major obstacle in getting their first foot on the property ladder. In addition to legal fees and general moving expenses, first time buyers are splashing out £4,617.81 on new furniture and electrical goods to create their ‘dream home’.
Despite rising house prices and the costs associated with buying a home, today’s first time buyers still want to furnish their homes almost immediately – with nearly a quarter (22%) purchasing their ‘essential items’ within a month of moving in, compared to just eight per cent 30 years ago. 21st century first time buyers are simply not prepared to wait – 42 per cent would rather stay in and save money by cutting back on their socialising costs than scrimp on what they want.
The study by Alliance & Leicester Mortgages into the ‘Attitudes of First Time Buyers in the 21st Century’ shows a marked difference between new buyers today and those who stepped onto the property ladder 30 years ago.
Then, first time buyers were more willing to scrimp and save up for their desired items, with a third (33%) prepared to do without essential household items for over 18 months after they moved in. For example, half (50%) of first time buyers in the mid 1970s moved in with a ‘hand me down’ sofa compared with just over a third (35%) today.
Stephen Leonard, Director of Mortgages & Savings at Alliance & Leicester said: “Our research shows that first time buyers today are clearly looking for a quick fix solution to achieving their ‘dream home’. It is encouraging to see that many first time buyers would rather cut back on going to the pub in order to pay for their furniture than extend their borrowing.
“The generational divide of first time buyers today compared to 30 years ago highlights the additional costs facing today’s movers. With costs averaging just under £15,000, it is vital for first time buyers to shop around and fully research all the costs involved with moving, including a budget for furniture and electrical goods.
“Finding a mortgage deal that helps minimise the costs of that first move can help, for example Alliance & Leicester’s FeeSaver mortgage range offers a free valuation, £250 cashback and no product fee. This frees up more cash to put towards the all-important move.”
Other findings reveal:
– 27% of first time buyers 30 years ago moved in with a second-hand wardrobe compared to 15% of first time buyers today
– 82% of first time buyers today rope their friends and family to help move them in, instead of spending money on removal vans compared to 57% of first time buyers 30 years ago