New home costs '30% of annual income'

The cost of buying and moving into a new home now takes up 30 per cent of homeowners' annual income, GE Money Home Lending has said.

The research could prompt an increase in the number of homeowners looking to move abroad, given that it now costs over £11,000 on average to move into a new home and pay resultant costs.

Legal fees as well as stamp duty, the cost of furnishings and mortgage arrangement fees all added up to a total of £11,372 in the first year alone, the study found.

And paying household bills costs an average of £3,500 per year in the typical UK home, according to the lender's research.

"While the price of the property may be the major financial anxiety for buyers, they must also consider other expenses associated with the house purchase," advised Gerry Bell, head of mortgage marketing at GE Money Home Lending.

"At a time when interest rates have been steadily increasing, allowing oneself a financial buffer has never been as important," Mr Bell added.

First-time buyers now pay almost 20 per cent of their income on mortgage repayments alone, according to the Council of Mortgage Lenders.


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