More than half of Brits spend more than they expect on homes

More than half of Brits spend more than they expect on homes [Photo: Courtney Keating via iStock]

Buying a home can be one of the most challenging and stressful things that anyone will ever experience, it's often said, but not knowing exactly what to expect when making this big decision can often lead to even more stress, especially when it comes to dealing with the financial aspect of the process. 

According to a new survey, the majority of people in the UK underestimate what it will cost them to buy a home when they come to market, with more than half saying they spent more than they originally intended to. 

In a survey conducted by Online Mortgage Advisor, it was discovered that as many as 51 per cent of British buyers went more than ten per cent above their budget when they were buying a property. Meanwhile, only 18 per cent managed to stay within ten per cent of their original budget. 

A further 17 per cent of respondents said they managed to stick within their original budget when buying and managed to buy for roughly what they expected to, while a mere seven per cent of those asked said that they had managed to spend more than ten per cent less than they originally set out to. 

The reasons people spend more can include a simple failure to budget correctly or a misreading of market conditions, but in many cases there are more practical reasons for things having gone wrong on the spending front. 

For example, 68 per cent of those who said they had overspent admitted that it was simply a case of them having fallen in love with a home when they viewed it, knowing they had to have it. Some 25 per cent of people said they had thought spending more eventually represented better value for money, while another 33 per cent said their partner had been a major influence on them spending more than they expected. 

"Buying the right house within budget can be a really difficult task, especially in a growing market where property prices are still increasing in most parts of the UK. Often people will set out to buy based on price, but then check to see what they could get if “they just spent a bit more," said Pete Mugleston, director of Online Mortgage Advisor. 

"From then the decision becomes less about price and more emotionally driven, and often people will either come across their dream home or find it hard to go push the budget down again after seeing what they can purchase with a small increase," he added.