Research from conveyancing software provider Smoove has revealed that just under two thirds of people who bought a home in the last year experienced unexpected costs, with over a quarter saying it was the most frustrating part of the process.
Renovation and repairs were the most common expenses buyers hadn’t accounted for, with the legal costs of buying a home the second most commonly cited. First-time buyers were more likely to complain of unexpected costs than those who had purchased property before (66% and 55% respectively), which Smoove says showcases the need for further education around the whole transaction and home buying process.
And although the figures show conveyancing costs have risen by 17% since last year – to a total of £1.9 billion – homebuyers said they would rather pay more for a faster transaction.
Smoove explained:
“None of the respondents indicated that this was the most frustrating part of the journey, showing rising costs are not what is bothering consumers, rather it is the unexpected costs that crop up later down the line. In fact, the research showed that more homebuyers would rather the process took less time than have it cost less, with over half (51%) agreeing with this statement.”
Matt Joy, chief growth officer at Smoove, added:
“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.”
The research was carried out by Censuswide, who surveyed 1001 homebuyers over the age of 25 who had moved home within the last year, and was supplemented by Smoove’s own data.
