Homeownership costs to hit £15,300 by end of 2015

Research from Legal and General suggests that the total annual cost of homeownership is set to soar.

By the end of 2015, the cost of owning a property is set to reach £15,300, with the firm predicting that this figure will hit £23,120 by 2030.

Increases

In addition, mortgage repayments are also set to rise from an average of £8,000 in 2015 to a projected total of £13,000 in the year 2030. This is in comparison to the average annual cost of renting, forecasted to jump from £7,500 this year to £12,000 in 2030.[1]

‘Streamlined stamp duty, low inflation and rock bottom interest rates have produced an exceedingly favourable market for homeowners; however, our research suggests that this trend is unlikely to last,’ observed Jeremy Duncombe, Director of the Legal & General Mortgage Club. [1]

‘The cost of homeownership is set to climb in the coming years in response to imminent interest rate rises and a projected increase in repair and maintenance costs. This increased expenditure is likely to have an effect on household budgets and it is therefore important that people factor this into their finances so that they are able to cope when costs increase,’ he continued.[1]

Homeownership costs to hit £15,300 by end of 2015

Preparation

Duncombe went on to sayt that, ‘the best way to prepare for the future is to speak to a mortgage broker, who can provide guidance on how to make the most of current rates and also advise on how increasing costs will impact borrowers in the future.’ He feels, ‘ensuring that individuals are on the most economical rate available to them can bring greater financial stability in the future.’[1]

‘Brokers are best placed to guide borrowers towards the best products for their specific circumstances and also advise them on ways in which they can protect themselves from the impact that increasing costs may have on them in the future.’[1]

[1] http://www.propertyreporter.co.uk/finance/homeownership-costs-set-to-hit-%C3%A3%C2%A215300.html