Owning a home in Sheffield now more expensive than buying one, says survey
Owning a home in Sheffield is now more expensive than buying one, says a survey
House prices are on the up but the latest research by the estate agent comparison site GetAgent.co.uk has found that the issue of affordability isn’t just increasing when it comes to purchasing a property, the cost of homeownership itself has also climbed and by a greater margin.
The figures show that the cost of owning a property currently sits at an average of £18,203 per year. This has increased by £1,836 since last year and so while the cost of owning a home may be lower than the initial cost of buying, it has seen a larger annual jump at 11.2%.
This cost has increased the most in Yorkshire and the Humber, where owning a home is now 17.3% more expensive than it was a year ago.
The North West has also seen one of the largest increases at 14.8%, as has the West Midlands at 12.2%, the South West at 12.2% and East Midlands at 11.4%.
GetAgent first analysed the cost of buying in the current market based on the cost of stamp duty, the average mortgage deposit at 15% of a property’s value, the average valuation and surveys costs and the average conveyancing fee of £860.
The research shows that based on the current average house price of £284,029, homebuyers in England are facing an average cost of buying totalling £46,366. This is 9.9% higher than just a year ago - an increase of £4,158.
The North West has seen the largest increase in the cost of buying in the last year at 13.6%, although Yorkshire and the Humber at 11.1% has also recorded a big increase. The North East at 13.4% and South West at 10.5% are also feeling the pinch when it comes to the cost of buying.
GetAgent analysed the annual cost of homeownership once the initial hurdle of a purchase has been achieved based on the average mortgage repayment, the cost of council tax, the average energy bill, the cost of water and sewage and a maintenance budget at 1% of a property’s value.
Founder and CEO of GetAgent.co.uk Colby Short said: “We all know how hard it is to secure that first foot on the property ladder. With house prices booming as a result of the Stamp Duty holiday, this task is now even more difficult, with an increase of nearly £4200 pounds from last year.
“However, what we often fail to consider when buying a new home is the ongoing costs of actually owning one. While mortgage rates are currently favourable, an increase is inevitable. Many will face far higher monthly repayments if they aren’t benefiting from a fixed rate.
“Then there’s the increasing costs of council tax and utilities, as well as the money required to maintain a home. The sum of these factors equate to a pretty hefty cost of more than £18,000 a year on the average home. That’s an increase of nearly £2000 in the last year alone.”