In Focus: Home ownership  

Average homeowner spends £76k on property in first year

 Average homeowner spends £76k on property in first year

The average homebuyer across England is now paying almost £76,000 in the initial year following a property purchase, with the figure jumping to £209,000 in some areas of the market. 

Estate agent comparison site, GetAgent performed the analysis, which included in the figure the initial expense of a mortgage deposit along with the cost of stamp duty, monthly mortgage repayments, annual utility costs and the average annual maintenance costs of owning a home.

Across England, the current average cost of a home is £315,965, meaning a standard 15 per cent deposit sits at £47,395.

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On top of this, the average stamp duty bill comes in at £3,298.

Following these initial spends, the ongoing costs of homeownership includes the average annual cost of maintaining a home of £3,160 a year, the average annual cost of mortgage repayments totalling £19,039 per year and the average cost of basic utilities such as gas, water and electricity, which comes in at £2,919 annually.

As a result, the total cost of homeownership in the initial year following a property purchase currently sits at £75,801.

GetAgent chief executive and co-founder, Colby Short said the rising cost of living means it is important that people understand exactly what they can expect after getting over the initial hurdle of saving a deposit. 

“Many buyers are now feeling the squeeze where the cost of repaying their mortgage is concerned. When you also add the fact that running costs such as utility bills have also spiralled, those who have overstretched when borrowing are now in a very difficult spot.

“So having a very clear view of both the immediate and ongoing costs of a property will safeguard you for times of economic instability and financial difficulty,” Short said.

Looking at it regionally, the cost is predictably at its highest in the London market, where the initial cost of owning a property totals £139,787 per year in greater London. 

This jumps to £209,329 in the City of London.

The South East is the second most expensive region at an annual cost of £100,395 during the first year of homeownership, with Surrey ranking as the most expensive county in the region and the most expensive in England outside of London at £135,776.

Buckinghamshire (£123,199), Hertfordshire (£117,499) and Oxfordshire (£109,662) are also home to some of the highest costs, as is Bath and North East Somerset (£107,929), Berkshire (£106,179), West Sussex (£100,035), Rutland (£96,746) and Hampshire (£95,863). 

In contrast, County Durham is home to the lowest cost of homeownership with a total cost of £31,639 associated with a property purchase during the first year.