£6,000 shock for first-time buyers

First-time buyers have to spend nearly £6,000 on top of the price of their home to get through the front door.

The nation's new property owners have to raise an average of £5,919 to cover costs such as legal bills, surveys, stamp duty, removals and basic furnishings.

It means the 500,000 new home owners in Britain last year spent £3billion on top of the purchase price.

Research released today reveals the high cost of moving is a shock to most first-time buyers, who have usually only budgeted for the purchase price. Nearly nine out of 10 admit they under-estimated the amount needed.

The survey of almost 900 first-time buyers by insurance firm Norwich Union, shows that 94 per cent set a strict budget but a quarter end up over-spending by an average of £10,000.

Of 250 estate agents quizzed, 80 per cent said first-timers always under-estimated the costs associated with buying a property.

Phil Spencer, expert house finder and presenter of Channel 4's Location, Location, Location said it was not unusual for new buyers to consider only the property price.

"It pays to be prepared and well organised, and I always encourage new buyers to consider every expense, investigate the various costs and set their budgets accordingly."