Average first-year homeownership costs hits £76,000


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 £47,395

Average homebuyers across England are now paying almost £76,000 during the initial year following a property purchase and climbing to as high as £209,329 in some areas of the market.

The latest research by estate agent comparison site,, 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 £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 are 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.

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).

Colby Short, CEO and co-founder of, 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, he said.

He said: 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.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Invest for Property. The information provided on Invest for Property is intended for informational purposes only. Invest for Property is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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