First-time buyers hit hardest by unexpected charges, survey reveals
A majority of UK homebuyers encountered unforeseen expenses during property transactions over the past year, according to new findings from conveyancing software provider Smoove.
A survey, which polled recent homebuyers, revealed that 62% reported unexpected costs during the process, with 27% citing these surprises as the most frustrating aspect of buying a home.
Renovation and repair bills were the most frequently mentioned unforeseen expenses, followed by legal fees and one-off costs like stamp duty and moving charges. These added costs were noted as contributing to transaction delays — an issue also highlighted by the Open Property Data Association (OPDA), which recently reported that property deals are typically taking a month longer than buyers anticipate.
First-time buyers appeared more vulnerable to hidden costs, with 66% affected, compared with 55% of second-time buyers. The data suggests a continued gap in consumer understanding of the full range of expenses involved in buying property, beyond standard legal and mortgage-related fees.
Smoove’s research also pointed to a rise in conveyancing costs. In total, buyers and sellers spent approximately £1.9 billion on conveyancing in 2024, a 17% increase from the previous year. However, respondents did not cite this increase as a key frustration, suggesting that predictability, rather than cost, weighs more heavily on buyers’ minds.
More than half of those surveyed (51%) said they would rather speed up the transaction process than reduce costs, highlighting time as a more critical pain point than price.
“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,” said Matt Joy (pictured), chief growth officer at Smoove. “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.”
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