Homebuying expenses drain their budgets
Half of first-time buyers in the UK moved into empty homes for months after purchasing, unable to afford furnishings due to the financial strain of deposits and other homebuying costs, according to Aldermore’s latest First Time Buyer Index.
On average, first-time buyers spent £15,509 on decorating and furnishing their homes. However, 23% of respondents reported spending more than £30,000 on personalising their property.
For many, furnishing a home took years, with 22% saying it took that long to complete the process. Despite the investment, 20% expressed dissatisfaction with the end result, citing the limitations of tight budgets.
In addition to deposits, first-time buyers spent an average of £6,350 on other homebuying costs, including broker fees, solicitor costs, and moving expenses. Many were unprepared for these additional expenses, which reduced their available budget for decorating.
To cut costs, 34% of buyers took on renovation projects themselves, opting to forgo professional help. Meanwhile, 27% turned to charity shops, car boot sales, and second-hand websites like Gumtree to furnish their homes, embracing the vintage trend as a way to save money.
“The homebuying process is a costly one,” said Jon Cooper (pictured), director of mortgages at Aldermore. “Not only do prospective buyers have to save for their deposit, but additional costs such as solicitor fees and moving arrangements all add up.
“To make the most of their new home, first time buyers will often find themselves looking for ways to save on renovating, decorating and furnishing, and this includes getting their hands dirty.
“While it may seem overwhelming, furnishing your new home marks the last step in the home ownership journey and for many, can be a fun project. There’s no rush to decorate your place immediately. In fact, taking your time and tackling things room by room, for instance, can make things more manageable within your budget.”
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