The average home in the UK costs £185,000 and Brits owe more than £340billion in mortgage repayments, yet many home buyers are putting every last penny towards covering the cost of their mortgage payments by cutting corners on checking the quality of what estate agents are presenting them with.
Of the 1,200 British home owners questioned by AA Legal Services, just one in four (28%) had commissioned a structural survey of their property (beyond the mortgage valuation) or checked for flood risk. Fewer still (14%) had sought an independent conveyancing service.
The research also shows that home buying mistakes go far beyond financial oversights. Despite a fivefold increase in complaints about noise from rowdy neighbours since the 1980s, just one in six (15%) homebuyers bothered to meet their prospective neighbours before buying.
Failing to Consider Future Costs
Fewer than one in four home buyers considered the future costs of their purchase before completing the sale; just 23 per cent commissioned a comprehensive survey, only 29 per cent considered the cost of council tax and just 21 per cent shopped around for awn insurance quote on the property.
Building Backlash
Despite potentially escalating costs of building repair work, fewer than one in five (18%) home buyers checked the flood risk at their new property, just one in ten (11%) checked the drainage and only one in four (28%) paid for a full structural survey.
Nightmare Neighbourhood
With just one in six (15%) home buyers taking the time to meet their prospective neighbours, fewer still (11%) investigated levels of noise pollution or visited the area during rush hour (18%). Just one in four (26%) checked to see if any building works were planned in their local area, although 42 per cent did research the local area before buying.
Commenting on the research, James Molloy at AA Legal Services, pointed out that moving home was one of the most important life events, and the biggest one-off financial investment most people ever make. “I’m very worried that so few take steps to protect their investment and ensure that their interests are represented.
“With home buyers stretching themselves to the financial limits to afford their home, many are cutting back on the relatively low costs of basic legal and social inspections,” he says. “New home owners who do not carry out basic checks, face discovering too late that their dream home could actually be a financial time bomb."
Further Findings
Low income home buyers, investing in homes worth under £100,000, are the most likely to be putting themselves at risk. Just 6 per cent sought independent conveyancing when they bought their home and only 17 per cent looked for an independent survey, AA reported.
Young home buyers, aged 18 to 24, taking their first step onto the property ladder, are the most likely to consider the costs of insuring their new home (40% compared to 21% nationally) and look into council tax rates (45% compared to 29% nationally). However, when it comes to getting to know the area, they are more likely to check out the local pub and nightclub (26%) than make an effort to meet the neighbours (12%) or consider any planned building works (21%).
