£76,000 - The cost of homeownership in the first year alone

The latest research by estate agent comparison site, GetAgent.co.uk, has revealed that the average homebuyer across England is now paying almost £76,000 during the initial year following a property purchase, although this cost climbs as high as £209,329 in some areas of the market. 

GetAgent analysed the current cost of homeownership, not only taking into account the initial hurdle of a mortgage deposit, but also the additional cost of stamp duty, monthly mortgage repayments, annual utility costs and the average annual maintenance costs of owning a home.

The research shows that across England as a whole, the current average cost of a home is £315,965, meaning that the current cost of placing a 15% mortgage deposit is an eye-watering £47,395. 

But it’s not just the financial hurdle of a mortgage deposit that homebuyers have to initially overcome, with the average stamp duty bill also coming in at £3,298. 

Then there’s the ongoing costs of homeownership, with the average annual cost of maintaining a home costing £3,160 per year, the average annual cost of repaying a mortgage totalling £19,029 per year and the average cost of basic utilities such as gas, water and electric coming in at £2,919 per year. 

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

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

No surprise then that the capital also accounts for the highest initial cost of homeownership at county level, coming in at £209,329 in the City of London and £139,787 across the wider area of Greater 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 cost when climbing the ladder, 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, however, the total cost associated with a property purchase still sits at £31,639 during the first year. 

CEO and co-founder of GetAgent.co.uk, Colby Short, commented:

“The high cost of homeownership is certainly nothing new but many homebuyers may be surprised at just how much a property will set them back during their initial year of homeownership. 

A mortgage deposit remains by far the highest cost associated with a property purchase and the additional running costs such as utilities and maintenance can often be an afterthought. However, when you do take them into consideration, it gives you a far clearer picture of the financial commitment you are making and this is extremely important, particularly in the current market,

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.”