According to a new study by Smoove, nearly two-thirds (62%) of those who bought homes in the UK in the past 12 months said they experienced unexpected fees in the transaction.
The survey also shows that more than a quarter (27%) consider this to be the most frustrating part of the process.
The most common costs that hinder the transaction process are renovation and repair, followed by legal and one-time fees such as stamp duty and mobile costs.
First-time home buyers are particularly vulnerable – two-thirds of this group (66%) experience unexpected costs, while previous purchase experience is only more than half (55%). According to Smoove, this highlights further education around the transaction process and financial commitments beyond known legal fees and collateral costs.
Home buyers and sellers are also facing rising transfer costs. On average, in 2024, a total of £1.9 billion of shipping methods were spent, up 17% year-on-year.
None of the respondents said this was the most frustrating part of the journey, suggesting that rising costs were not plaguing consumers, but unexpected costs later on.
Matt Joy, chief growth officer of Smoove, commented: “The lack of clarity in real estate purchases and sales at the biggest financial moment in a person’s life adds new and preventable stress to consumers.
“The core is the spiral spiral, which counts the potential of cost without cost. Judging from the expenses of unexpected repairs, movement costs, investigations or searches, unplanned expenses may increase rapidly and promote the pressure and pressure of the transaction itself.”
He concluded that the study emphasized the need for greater certainty in the process and better information was needed from the outset so that buyers could budget and plan more efficiently. “Solving such issues will help reduce delays and falls and ultimately build more trust in the process, encouraging consumers to move more frequently.”
