Around 62% of homebuyers who have bought in the last 12 months said they faced unexpected costs during the property transaction.
According to research from Smoove, more than a quarter – 27% – said this was the most “frustrating” part of the process.
Common unexpected costs include renovations and repairs, followed by legal and one-off costs such as stamp duty and moving costs.
The added costs contribute to delays in the process, Smoove said, and recent research from the Open Property Data Association (OPDA) indicates that the property transaction process takes longer than consumers expect.
Smoove said two-thirds of first-time buyers experienced unexpected costs, which compares to 55% of second-steppers.
The firm said this shows the need for “further education around the transaction process and all it entails, beyond known legal fees and mortgage costs.”
Smoove added that conveyancing costs were also rising, with £1.9bn spent on conveyancing last year, a rise of 17% year-on-year.
However, the company said rising costs were not cited as a problem, but unexpected costs later down the line were.
Around 51% said they would rather the process took less time than have it cost less.
Matt Joy, chief growth officer at Smoove, said: “In what are normally the biggest financial moments in a person’s life, the lack of clarity in property purchases and sales adds a completely new and preventable layer of strain for consumers. Central to this is the potential for spiralling, unbudgeted costs. From unexpected outlays on repairs, moving costs, surveys or searches, unplanned expenses can add up quickly and contribute to the stress and pressure on the transaction itself.
“What this research highlights is the need for greater certainty in the process and better information at the outset, allowing buyers to budget and plan more effectively. Resolving issues like this will help reduce delays and fall-throughs, and ultimately build more trust in the process, encouraging consumers to move more frequently.
“For conveyancers, with homebuyers not necessarily chasing the cheapest service, there is an opportunity to work to value-based pricing. Conveyancers can take comfort that charging the right amount for their expertise won’t be a deal-breaker for consumers, so long as it is planned for and supports a smoother transaction experience, enabling more sustainable business models in the industry.”
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