Home-Ownership Costs Now Exceed £18,000 per Year on Average
As average house prices continue to break records in all regions of the UK millions are facing the prospect of never owning their own homes, mortgage rates continue to hover at all-time record-lows but the costs associated with home-ownership are also on the up.
According to research conducted by GetAgent, it now costs the average buyer more than £18,000 per year to purchase a home in the UK.
Overall costs were analysed by GetAgent on the basis of a standard 15% mortgage deposit, stamp duty costs, valuation fees, surveying fees and conveyance fees. Given the average property price in England of £284,029, this would equate to an overall initial buying cost of £46,366.
An increase of £4,158 compared to last year, a leap of 9.9% over the course of 12 months.
Overall borrowing costs are higher in some regions of the UK than others, having increased as much as 13.6% in the North West since last year. Similar increases were recorded in the North East (13.4%), Yorkshire and the Humber (11.1%) and the South West (10.5%).
GetAgent took into account further home-ownership costs following the initial purchase process, including expenses like monthly energy bills, council tax, mortgage repayments and a general upkeep budget of 1% of the value of the property.
With all factors considered, GetAgent concluded that the cost of owning a property in the UK is now approximately £18,203 per year. This represents an increase of £1,836 over the course of the past year, equating to growth of 11.2%.
Annual home-ownership costs have grown fastest in Yorkshire at the Humber – a huge 17.3% compared to the same time last year. Growth of 14.8% was also recorded in the North West, followed by the West Midlands (12.2%), South West (12.2%) and East Midlands (11.4%).
Home-Ownership Costs beyond Mortgage Repayments
Speaking on behalf of GetAgent.co.uk, CEO and Founder Colby Short commented on how many prospective buyers overlook or underestimate the additional costs associated with the owning a home.
“We all know how hard it is to secure that first foot on the property ladder. With house prices booming as a result of the stamp duty holiday, this task is now even more difficult, with an increase of nearly £4,200 pounds from last year,” he said.
“However, what we often fail to consider when buying a new home is the ongoing costs of actually owning one. While mortgage rates are currently favourable, an increase is inevitable. Many will face far higher monthly repayments if they aren’t benefiting from a fixed rate,”
“Then there’s the increasing cost of council tax and utilities, as well as the money required to maintain a home. The sum of these factors equate to a pretty hefty cost of more than £18,000 a year on the average home. That’s an increase of nearly £2,000 in the last year alone.”