£50k to secure, £20k a year to maintain - The current cost of homeownership revealed

Research by estate and lettings agents, Barrows and Forrester, has revealed the current eye-watering cost of obtaining and maintaining a foot on the property ladder, following a pandemic property market boom that has seen house prices climb to record highs.

The initial cost of buying - £49,386

With the average UK house prices currently sitting at £278,436, the largest initial hurdle facing homebuyers is the mortgage deposit, which based on the average of 15%, comes in at a hefty £41,765. 

This is swiftly followed by stamp duty at a cost of £3,912 on average, with mortgage costs such as booking and arraignment fees, mortgage valuations, and electronic transfer fees totaling an average of £1,375.

A surveyor's fee, while not essential, is highly recommended when buying a property as it can highlight any issues with the property that could be extremely costly if left unaddressed. This costs a further £425 on average, while the further costs required for legal and conveyancing fees and local searches is one of the larger initial costs at an average of £1,400. 

Finally, there’s the cost of moving into your new property, which will set the average homebuyer back a further £500. 

In total, this brings the initial cost of buying a property to just shy of £50,000 for the average UK buyer. 

Ongoing costs - £19,796 per year

But the financial strain of homeownership doesn’t stop there. Based on the current market, Barrows and Forrester estimates that the average UK homeowner will pay £12,513 in mortgage repayments on an annual basis. 

Property maintenance and repairs also average £2,784 per year, with council tax (£1,966) and running costs such as gas and electricity also totaling £2,390 on average each year. 

Finally, while marginal in comparison to the rest, buildings and contents insurance adds another £142 per year to the average cost of owning a home. 

This means that the average homeowner is looking at a total ongoing cost of almost £20,000 per year once they’ve secured a foot on the ladder.