The Fee Trap: Brits spend average £8,113 in unexpected fees in addition to their deposit
The digital conveyancing platform When You Move has today released a nationally representative study surrounding the lack of transparency in property transaction fees – from surveyors and conveyancers to estate agents and logistics.
- 28% of all homebuyers – 7.8 million people – would have pulled out of a property at the point of discovering the true extent of fees but were unable to do so at this point
- One fifth, 20% of homebuyers – 5.6 million people – have had to turn to friends and family to cover the cost of unexpected fees
- 31% of homebuyers in Britain feel they were blindsided by the true extent of property costs.
- Bank of Mum and Dad: those who have had to turn to family and friends to cover the ultimate cost of fees for a property transaction borrow £16,712 to cover the cost of fees
The data reveals the true extent of the deficit between homebuyers’ saving plans for a new property versus the actuality of unexpected fees, wiping a hefty £8000 off their deposit savings. This research is launched amidst a new tool that When You Move is launching – QuickQuote – that eradicates the opaqueness shrouding UK conveyancer fees by ensuring all final costs are presented for evaluation at the beginning of the solicitor selection process.
QuickQuote launches in response to new industry regulations
From December 2018, all regulated law firms will be required to publish information on prices they charge for their services. Conveyancers, estate agents and mortgage advisors in the property industry can stay ahead of the regulations by installing the When You Move tool on their websites. The tool is a quick and accessible service for consumers to use when they are searching for the costs of a conveyancing firm.
Top line stats:
- Brits spend an average of £8,113 in unexpected fees in addition to their deposit
- Almost a third, 31% – 9 million people – of all homebuyers lost a significant proportion of what they had saved for their deposit on unexpected fees
- A quarter- 7 million – didn’t factor any additional costs when saving for a deposit on their property
- 25% felt their solicitor misled them in relation to the true extent of fees surrounding their legal services
- Over a quarter (28%) of UK homebuyers would have pulled out of a property purchase if they were aware of the true extent of the associated fees to come
- Nearly half (48%) of those who have saved for a deposit in the UK or faced fees took over two years to save for their deposit, totting up nearly £25,000 in their deposit pot
- One fifth, 20% of homebuyers – 5.6 million people – have had to turn to friends and family to cover the cost of unexpected fees
Simon Bath, CEO of When You Move speaking on the upcoming regulatory change:
“This is a simple to use tool that can alleviate a huge amount of hassle and process from industry partners who are keen to be compliant. As an industry, we’re renowned for archaic processes and sluggish reactions. QuickQuote enables us to pre-empt a mandatory industry shift that is critical to address, in an efficient and transparent manner”.
Click here to find out how When You Move’s QuickQuote service can ensure you are compliant with the incoming regulations: https://whenyoumove.com/quickquote/
Kindly shared by When You Move
