Figures from the Co-operative Bank demonstrate that over the course of their lifetime the average Briton spends around £23,800 on relocating, partly because of stamp duty, estate agent services and solicitors’ fees, which are increasingly putting pressure on household finances.
And around 15 per cent of people now accumulate personal loan or credit card debt to fund themselves through the home buying process, the latest research indicates.
John Barker, head of mortgages at the Co-operative Bank, said: “As house prices have continued to increase it is important for people to look at the bigger picture in terms of costs.”
“Hidden costs that are not budgeted for can soon mount up and by having a contingency fund in place it will enable people to be fully prepared for any eventuality,” he added.
A report earlier this year from the Consumer Credit Counselling Service suggested that British homeowners will be “on the rack” financially throughout 2007.