First-time buyers in the UK now face an average upfront cost of nearly £33,000 to step onto the property ladder, marking an increase of more than £1,000 (3%) compared to 2024.
Rising Costs for First-Time Buyers
A recent report by Compare My Move highlights the growing financial burden on prospective homeowners, breaking down the key expenses associated with purchasing a property in 2025. The report also offers practical tips for reducing costs in an increasingly expensive market.
A breakdown of the costs associated with buying a home reveals significant increases in several areas:
| Expense | 2025 Cost | % Change | £ Change |
|---|---|---|---|
| Property Survey | £488 | +6% | £27 |
| Conveyancing | £1,743 | +13% | £195 |
| Valuation Fee | £452 | +45% | £140 |
| 10% Deposit | £29,200 | +2% | £700 |
| Removal Company | £1,044 | -4% | -£42 |
| Postal Redirection | £40 | +11% | £4 |
| Total Cost | £32,967 | +3% | £1,024 |
The Biggest Financial Hurdles
The largest expense for first-time buyers remains the deposit. With the average UK house price at the end of 2024 standing at £292,000, a 10% deposit equates to £29,200. This is followed by conveyancing costs, which have risen by 13% to an average of £1,743.
Additionally, valuation fees have seen the steepest increase, surging by 45% to £452, while property survey costs have climbed by 6% to £488.
Market Impact and Future Implications
The rising costs could deter many first-time buyers, potentially impacting the wider housing market. Dave Sayce, founder and managing director of Compare My Move, warns of the potential repercussions.
“If the number of first-time buyers decreases, it will have ripple effects across the property industry. One major impact will be an increased demand for rental properties, leading to higher rental prices. Buy-to-let investors may see opportunities, but with rising taxes on second homes, these additional costs could further drive up rental prices.”
Sayce also notes that a decline in first-time buyers could slow down the overall home-buying process. “First-time buyers often help speed up transactions as they are not part of a property chain. Without them, sales may take longer to complete, leading to a sluggish housing market.”
Navigating the Challenges
With costs on the rise, first-time buyers may need to explore alternative ways to enter the market, such as government-backed schemes, shared ownership, and negotiating better mortgage rates. As the housing landscape continues to evolve, prospective homeowners will need to be more strategic than ever in their approach to buying a home.
For now, the increasing financial burden highlights the challenges facing those looking to purchase their first property, with affordability concerns likely to remain a key issue in 2025 and beyond.