Nearly two thirds (62%) of those who have bought a home over the past 12 months said that they experienced unexpected costs during their transaction, research from Smoove has revealed.
In addition, over a quarter (27%) said this was the most frustrating part of the process.
The most commonly cited cost was renovation and repairs, followed by legal and one-off costs associated with a transaction – such as Stamp Duty and moving costs.
These costs contributed to the delays in the process that have also been identified in recent research by the Open Property Data Association (OPDA) which showed that transactions take a month longer than consumers expect.
First-time buyers were particularly susceptible to these pressures.
Two thirds (66%) of this demographic experienced unexpected costs, compared to just over half (55%) of second steppers, showcasing the need for further education around the transaction process and all it entails beyond known legal fees and mortgage costs.
Homebuyers and sellers also faced rising conveyancing costs.
On average, a total of £1.9bn was spent on conveyancing in 2024, up 17% year on year.
Despite this, 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, 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.”
He added: “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.”
