Bought your first home? Congratulations!
Before you pop the cork… There’s something you should know. The expenses don’t end at completion… They’ve only begun.
Buyers tend to get hung up on the deposit and stamp duty costs so much that they forget about the mountain of fees that greet them after they get the keys. It’s not insignificant fees either.
Here’s the problem:
The UK average buyer typically spends thousands pounds over and above their deposit. However that figure can balloon when you start living there and making it home.
Let’s break down the post-completion costs that catch new homeowners off guard…
What you’ll pick up:
- Why post-completion costs really matter
- Gas cooker pipework alterations explained
- The most commonly missed expenses
- How to plan ahead financially
Why Post-Completion Costs Really Matter
Post Completion costs are hidden fees that become apparent after contracts have been signed. They can completely derail your budget. What’s worse…
They can financially strain you at the time when you should be relaxing in your new house.
Recent data found that hidden house buying fees can reach nearly £30,000, which is significantly more than the average first-time buyer budget. This is not an amount most have lying around.
The good news is that budgeting is easy once you know what you are looking for. So let’s begin with one of the biggest kitchen money pitfall that most people never consider…
Gas Cooker Pipework Alterations
When moving into a new home it’s rare to find your kitchen set up exactly how you want it. Perhaps you don’t like the electric cooker and want gas installed instead. Maybe there’s already a gas point but it’s on the wrong wall for your new cooker.
That’s when gas cooker pipework alterations come into play.
They’re far more prevalent than most first-time buyers think… And they’re more expensive than you might expect. The gas cooker installation cost can rise significantly when new pipework’s needed. A straight-forward like-for-like replacement could be as little as £75-£150. But once you start factoring in new pipework or moving the gas point, prices rise to £300+
Why does this happen? A few reasons:
- The gas meter is far from the new appliance location
- Old copper pipework needs replacing before use
- The bayonet fitting isn’t in the right position
- Floorboards have to be lifted to run new lines
- Extra safety checks and certification are needed
Disclaimer: This work should only be completed by a Gas Safe registered engineer. No DIY attempts, budget for this in your Year 1 budget.
Other Hidden Post-Completion Costs
Gas cooker pipework conversions are just one example. There are all sorts of costs that come to new homeowners after moving in.
Let’s take a look at the biggest ones…
Furniture & Appliance Gaps
Your new home likely didn’t come with a fridge, washer or bed. Plus they add up quickly.
Common early purchases include:
- White goods (fridge, washing machine, dryer)
- Beds and mattresses
- Sofas and dining sets
- Curtains and blinds
- Kitchen essentials
Even second hand buying, most first-time owners spend between £2,000-£5,000 furnishing their first property. And that’s before you start looking at lightbulbs, kettles and toasters.
Emergency Repairs
Here’s the thing about surveys… They don’t catch everything.
You move in and discover that the boiler doesn’t work. Or a pipe springs a leak. Or there’s a slow drip from the roof when it first rains heavily.
Post completion repairs can run into hundreds or thousands of pounds. First time buyers are universally considered to be facing a tougher environment than in years past. Moving into your new house should be a time to relax and unwind. But surveys can often highlight problems at the eleventh hour. And it’s not great news when you’ve just run yourself dry financially.
Common surprise repairs include:
- Boiler breakdowns or servicing needs
- Plumbing leaks and burst pipes
- Electrical faults or outdated wiring
- Roof repairs after heavy weather
- Damp treatment on internal walls
Here’s a little saying to live by: Save about 1% of your home’s value each year for maintenance and unexpected repairs. You never know when something can happen.
Utility Setup Fees
Switching on your utilities isn’t always free. Some providers charge:
- Connection or activation fees
- Meter installation charges
- Deposit payments for new customers
- Broadband setup fees
They may not seem much individually, but when you have to set up gas, electricity, water, internet and TV in one go they soon mount up. You should allow around £200-£400 in setup costs alone during your move-in week.
Insurance & Council Tax
You need buildings insurance before your lender will even allow you to complete. Contents Insurance? That’s completely up to you.
Don’t forget about:
- Buildings insurance (£150-£400/year)
- Contents insurance (£100-£300/year)
- Life insurance (if you have a mortgage)
- Council tax (varies by band and area)
Council tax starts from the day you move in as well. If you finished at the beginning of the month, you’re immediately liable for nearly a whole month’s worth of tax. It’s easy to lose track of with boxes everywhere.
How To Plan Ahead For All Of This
Now that you know what’s coming, let’s talk about how to prepare properly.
Follow these tips:
- Build a post-completion budget alongside your deposit savings
- Set aside at least £3,000-£5,000 for immediate expenses
- Create a home emergency fund for surprise repairs
- Get quotes for gas, electric and appliance work early
- Read your survey report carefully and budget for any flagged issues
Think of post-move-in costs as part of the purchase process. Not something you think of after you sign on the dotted line.
Plan for your move so that you can enjoy your new place instead of worrying about finances when an unplanned expense shows up.
Bringing It All Together
Running costs are one of those things that can surprise even the savviest new homebuyer. Between modifying pipework for a gas cooker, buying White Goods and dealing with unexpected repairs and utility connection charges, the bills soon mount up.
However you don’t have to be one of these buyers who get burned. Here’s the secret:
- Knowing what expenses to expect ahead of time
- Budgeting extra beyond your deposit
- Building an emergency fund
- Getting quotes early for known jobs
When you budget for these expenses from the beginning, moving into your first home is far less stressful. And a whole lot more fun!