The cost of buying a home continues to rise, with first-time buyers now needing an average of £32,967 in upfront costs — an increase of more than £1,000 (3%) compared to 2024, according to a new report by Compare My Move.

With house prices remaining high and essential home-buying fees increasing, many aspiring homeowners are struggling to get onto the property ladder. The biggest financial hurdle remains the deposit, but rising conveyancing and survey costs are also adding to the burden.

WHERE IS THE MONEY GOING?

The report breaks down the main costs first-time buyers face:

• Deposit – At 10% of the average UK house price (£292,000), buyers need £29,200, up £700 from 2024.
• Conveyancing – Legal fees now average £1,743, marking a 13% rise (£195).
• Property Survey – A standard home survey costs £488, up 6% (£27).
• Valuation Fee – The sharpest increase, up 45% to £452 (£140 more than 2024).
• Removal Costs – Average of £1,044, though this has dropped slightly (-4%, or £42 less).
• Postal Redirection – Now costs £40, a modest 11% increase.

With deposit requirements and fees on the rise, the overall cost of buying a home is becoming increasingly out of reach for many first-time buyers.

WHY ARE COSTS INCREASING?

A combination of factors is driving up costs. Higher property prices mean larger deposits, while legal and survey fees have risen due to inflation and increased demand for professional services. Valuation fees, in particular, have surged—potentially due to higher lender scrutiny or increased costs of professional assessments.

However, one positive note is the slight decrease in removal costs, which have dropped 4% on average.

HOW CAN FIRST-TIME BUYERS SAVE?

Despite rising costs, first-time buyers should be advised that there are ways to reduce upfront expenses:

1. Consider Government Schemes – First-time buyer incentives, such as shared ownership or First Homes schemes, may help reduce deposit requirements.
2. Shop Around for Services – Comparing conveyancing fees, surveyor costs, and mortgage deals can lead to savings.
3. Negotiate Fees – Some lenders offer free valuation surveys or cashback incentives to help with upfront costs.
4. Explore Alternative Mortgages – Products such as family-backed or Income Boost mortgages may improve affordability.
5. Plan for Hidden Costs – Factoring in potential rises in fees and budgeting accordingly can help avoid financial surprises.