Buying a Home – What Could it Cost – Hethel Innovation

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Moving Home - How Much Could It Cost?


We at Hethel Innovation are proud to be supporting the growth of businesses in New Anglia, including Housecheckr. At Hethel Innovation we are all about supporting SMEs in New Anglia to assist in their innovation and competitiveness.

Last year Mark Trett, Housecheckr MD, approached us needing support on collecting vital research for their innovative business supplying 140-point checks to people buying a home, something him and his team as a small business do not necessarily have the time to do.

We were able to research and collect this data for them in order to inform their brilliant product and subsequent market research overall increasing the competitive ability of Housecheckr providing their product as a service. 

Buying a home issue 1
Buying a home issue 2

Firstly, we thought it was important to identify who may be using Housecheckr’s 140-point housing observation report. We decided to include both first and second time buyers. We found that first time buyers were like to be around the age of 32 with a budget of around £200,000 and a mean deposit of £41,000. 74% of first time buyers are couples and 37% have children. There were around 645,000 first time buyers in Britain in the year 2015-16. We assumed that first time buyers are more likely to use Housecheckr’s products due to the fact they are likely to be more nervous about buying a home and parting with that amount of money.

This is in contrast with second time buyers who have an average age of 42 and an average cost of a second home being £370,500. This huge jump in price is reflected by the fact that 14% of second time buyers borrow money from family or friends in order to make the move. However, when it comes to second time buyers over 88% consider buying a property that needs some renovation. This is where Housecheckr’s service comes in, second time buyers considering buying a property that needs some fixing may want extra confirmation on what exactly needs work, so they have no surprises when they move in. 

Mark also asked us to investigate the top issues that first time buyers have in their houses. It is not uncommon that rose-tinted glasses get in the way when viewing a property and it isn’t until too-little-too-late after moving in that a person realises how much work really may need doing to their new home. A first time buyer is likely to spend around £1,500 just fixing cosmetic issues alone. We collected data on the top ten most common issues with houses and how much it would cost to fix them. These included improper electrical wiring, costing on average £5,250 to fix; structural problems costing around £12,500 and heating systems costing £3,400 or more! If just these three things went wrong in your new home you could be spending upwards of £20,000 to fix them, on top of the £40,000 deposit a first time buyer is likely to pay, which a lot of the time just cannot be afforded. 

With Housecheckr’s survey services you can be sure that you won’t get any nasty, unnoticed surprises when you move into your first or second home. That piece of mind is very much needed during what can be once of the most stressful times in your life. 

All figures correct at time of writing. Research conducted by Hethel Innovation Ltd for free, business support through the Breakthrough project made available by EU ERDF funding. 

Sources:

https://bit.ly/2TPO5Fy

https://bit.ly/2UPnKaR

https://bit.ly/2r307B8

https://bit.ly/1WvBYbX 


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