Money News
House-hunters peering in estate agents' windows this spring are likely to face a financially fraught first year - shocked by basic financial oversights, unexpected bills and even babies. According to new research from Yorkshire Bank Mortgages, far from ending when the 'sold' sign goes up, many homeowners discover the drain on their pocket has only just begun.
Almost one in two (44%) admit they forgot to factor in legal fees, stamp duty and even a property survey. And fewer than one in ten (8%) put money aside for moving costs. Meanwhile, the expenses of a new home don't end when the boxes are unpacked. Within the first year, 32% of homeowners have had to replace or repair a broken cooker and 14% have faced even larger bills when their boiler blew up. Adding to the expense, 10% of women have become pregnant soon after moving in to their new home.
The research also found that one in three new home owners were totally unprepared for the large amounts of cash they would have to continue to splash out over the coming months.
Yorkshire Bank's research also indicated that many new homeowners may be saddling themselves with high expenses more than a year after moving in. Despite the overhaul of the council tax bandings, only 45% found out which band their would-be home was in before they bought it. Perhaps more surprising, with higher fuel bills and energy efficiency measures being brought into HIPs (Home Information Packs), only 25% of homebuyers enquire what the previous occupant paid in utility bills.
Despite this struggle, many risk over stretching themselves during their first year - not least the 76% of homeowners splashing out on both a new kitchen and a new bathroom - at an average cost of £6,500.
18 April 2007 © Moneyextra.com
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