The cost of moving into a first home is now approaching £15,000, suggests Alliance & Leicester, as one-fifth of FTBs spend a third kitting out their homes within the first month.
A study – entitled Attitudes of First Time Buyers in the 21st Centuary - of the first-time buyers’ markets by the bank reveals 25% of new homeowners spend an average £4,617 fully furnishing their first home within a month of moving.
Along with other costs such as stamp duty, legal fees and general moving expenses, A&L suggests purchase of ‘essential items’ has led to people choosing to stay in and cut back on their socialising costs rather than scrimp on the goods they want in their homes, rather than extend their borrowing requirements.
Comparison of new buyers today and 30 years ago reveals at least one-third (33%) of buyers were prepared to do without essential household items for as long as 18 months, while half (50%) of first-time buyers during the 70s moved into their first owned home with a ‘hand me down’ sofa compared with just 35% today, and 27% of first-time buyers 30 years ago had a second-hand wardrobe compared of 15 today.
That said, eight out of ten buyers (82%) today ask friends and family to help them move in to save money on the moving cost, whereas 43% would have used removal vans in the 70s.
According to A&L, moving costs, based on the purchase of a £139,000 property are:
|Land Registry fee||£200|
|FTB top 10 desired items (see below)||£4,617.81|
Similarly, top ten items seen as ‘essential’ to FTBs when moving are:
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress