Buying your first home is exciting, but it can also be full of sneaky surprises. Once the deposit is paid and the keys are in hand, many new homeowners find themselves facing unexpected costs they hadn’t budgeted for.
According to recent research by Skipton Building Society, first-time buyers in the UK may face unexpected costs of nearly £30,000
From legal extras to post-move chaos, these overlooked expenses can quickly add up. But the good news? A little foresight goes a long way.
At Courtney’s Independent, we’ve put together this guide to help you navigate these often-overlooked expenses, from legal fees to emergency repairs, ensuring you’re financially prepared when stepping into homeownership.
Hidden Costs First-Time Homeowners Forget to Budget For
Low-End Estimate for Hidden Costs: £2,000
This budget covers essential expenses like legal fees, basic removals, utility setup, and a small emergency fund for unforeseen repairs.
High-End Estimate for Hidden Costs: £5,500
This includes professional moving services, higher utility setup costs, more furnishings for your new home, and a larger emergency repair fund for unexpected issues.
1. Legal Fees
Legal fees are often quoted early, but additional costs can sneak in. These include disbursements for local authority searches, land registry fees, and bank transfer charges. Many first-time buyers don’t account for these extra fees until it’s too late.
- Request a full breakdown from your solicitor at the start. Be sure you understand what is included in the quoted fee.
- Anticipate additional charges for searches, which could add up to £150–£500 depending on your location and the complexity of the transaction.
- Conveyancing fees for a £250,000 property can range from £850 to £1,500, but always confirm the full cost before proceeding.
2. Moving Day Costs
Moving day expenses go far beyond van hire. You’ll need packaging materials, possibly storage, and meals to keep you going through the chaos. Even if you’re handling it yourself, moving involves hidden costs like fuel, insurance, and additional help.
- Factor in moving charges. For a local move, professional removals generally cost £300–£600.
- For DIY, van hire typically costs £80–£120 per day. Factor in fuel (approx. £20–£30) and insurance (about £10–£20 per day).
- Packaging costs can range from £50–£100. Save money by using free materials from local shops or online marketplace groups.
- Consider storage if your new place isn’t move-in ready. Storage can cost £50–£150 a month.
Watch this video for expert tips on how to manage moving day costs and make your move smoother.
3. Utility Setup Fees
Setting up gas, electricity, water, and the internet can be a minefield. Many new homeowners are surprised by upfront deposits or service connection fees, especially if you don’t have a credit history. Moreover, some suppliers lock you into high rates that you inherit from the previous owner.
- Use comparison tools like Uswitch to find better deals on energy and broadband before moving in.
- Utility setup costs: Expect to pay £100–£200 for gas and electricity connection or deposits. Water bills may require a standing charge.
- If you’re in a shared property or renting before buying, take regular meter readings and contact your providers early to avoid overcharging.
- Council tax might be a surprise if it hasn’t been factored into the sale price. Set aside an average of £100–£300 per month.
4. Emergency Repairs
No matter how thorough your survey is, some issues only surface once you’ve moved in. It’s common for new homeowners to face sudden repairs, from leaking roofs to faulty boilers or unexpected plumbing issues. Without an emergency fund, these repairs can quickly derail your budget.
- Set aside an emergency fund of £500–£1,000 for unforeseen repairs. This allows you to act quickly without scrambling for cash.
- Boiler cover is often a good investment when buying an older home. It can cost around £100–£150/year for basic cover but will save you money on repairs.
- Prioritise critical repairs. Non-urgent issues like cosmetic work can wait until your finances are more stable.
5. Furnishing Your Home
Once the boxes are unpacked, it’s time to furnish your new home. This can quickly get out of hand, especially if you’re replacing old furniture or buying new essentials. Many first-time buyers underestimate how much they’ll spend on things like curtains, bins, and light fixtures.
- Stick to the essentials first– A bed, sofa, and storage. You can always add the finishing touches later.
- Use second-hand furniture: Websites like Facebook Marketplace, eBay, and Gumtree can offer great deals, with savings of 50% or more compared to buying new.
- Furnishing costs can be anywhere from £500–£2,000, depending on how much you need.
- Don’t forget smaller items like light fittings, rugs, and storage baskets- they can quickly add up.
6. Waste Disposal
Clearing out the old can often be overlooked, but disposing of large items like old carpets, furniture, and packaging after moving in can create extra costs. Many local authorities charge for bulky waste collection, and you’ll need to arrange for disposal.
- Renting a skip is an efficient way to handle waste disposal without multiple trips to the tip. Expect to pay around £150 for a small to medium-sized skip, depending on your area. Proskips in London offers flexible, reliable skip hire services for a range of waste disposal needs.
- Don’t delay this process, waste can pile up quickly and be a headache if not dealt with promptly.
First-Time Buyer Budgeting Cheatsheet
Here’s a quick breakdown of hidden costs:
- Legal fees: £150–£500 for disbursements
- Removals: £300–£600, £80+ for DIY van hire
- Utility setup: £100–£200 for deposits and switching
- Emergency fund: £500–£1,000 for repairs
- Furnishings: £500–£2,000 depending on needs
- Waste disposal: £150 for skip hire
Final Thoughts
Buying your first home is exciting, but it’s also expensive. Be proactive by budgeting for these hidden costs before you move in. Planning for the unexpected can help you stay on track and prevent financial stress. Start with a solid budget, set aside some savings for emergencies, and be sure to get quotes for every service, from legal fees to removals and utility setup. With a little planning, you can enjoy your new home without being blindsided.
