First-time buyers underestimate stamp duty and broker fees

Ryan Bembridge

July 17, 2017

First-time buyers commonly underestimate the cost of stamp duty and broker fees, Barratt Homes research shows.

Buyers end up paying £700 more than expected on stamp duty and £630 more on broker fees.

A Barratt spokesman said: “The results of this research clearly show buyers are struggling to understand not only how much they need to budget, but also what that budget should be covering.

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“However, where people are able to seek out and receive expert advice, not only are their budgets helping them plan better, but almost a quarter of people are making substantial savings as a result.”

Overall first-time buyers end up spending £2,000 more than expected, when you also factor in the cost of surveys, valuations and legal fees.

Currently first-time buyers are budgeting £2,800 for these costs, meaning they are typically 73% short of the £4,955 amount needed.

Barratt conducted the search after releasing a homebuilders’ online guide to give buyers an idea of the fees and costs they will be charged.

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