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Immediate Costs To Consider When You Have Purchased A Property

Posted on 08 August, 2017

Moving into your new property can be both daunting and expensive. See below for our list of immediate costs that you should budget for when moving into a property.


The majority of properties will come unfurnished but if you’re lucky; the property you purchase may have built in kitchen appliances such as an oven, fridge/freezer and hob. Don’t forget to consider the costs of basic furnishings such as a sofa, dining table, chairs, tv, bed. etc. (Hopefully you will already have the majority of these)

Consider websites/initiatives like Freecycle. Where you can get items for free no longer wanted by people in your local community.

PC Budget Tip: £500


Your mortgage will probably be your biggest monthly outgoing. The monthly cost of your mortgage is dependent on the overall size of your mortgage and interest rate you are paying.

PC Tip: Try and save the same amount that you expect your mortgage to be. The quicker you can get into the habit the better.

PC Tip: Your first mortgage payment may be more expensive than payments going forward. Your first mortgage payment may not be due for several weeks, depending on the date you move in and your regular repayment date, but you still have to pay interest from the date funds are released.

Council Tax

If you’re living alone you can apply for a single persons discount of 25% from your local council. Council tax varies for borrowers depending on your local borough and yes it is compulsory. Properties are classified in bands ranging from A to H. You can have a look at your local councils website to determine how much you will have to pay.

PC Budget Tip: £80 + a month

TV License

The TV licence costs £147 a year, although you can pay in weekly, monthly or quarterly instalments. The annual fee will continue to rise in line with inflation for the next five years.

PC Budget Tip: £12.25 a month

Service Charge and Ground Rent

You will only have to pay the above if you are buying a leasehold property (commonly flats and some new build houses).

Service charges are used to pay for the management and maintenance of the building’s communal areas.

PC Budget Tip: £100 – £200 a a month.

PC Note: Leasehold properties with additional services such as gym and concierge are likely to incur a higher service charge.

PC Case Study: I made the mistake of not making any service charge payments for a whole year. When it came to selling my property I had to clear a service charge bill of £1500, therefore, I would always recommend setting up a direct debit or paying the yearly amount in full at the start of your lease.

Bills (Water, Electricity, Gas, Broadband)

The amount you pay for your bills will vary. Naturally the bigger the property and more people in property the bigger your utility outgoings will be.

PC Tip: Now on Zoopla whilst you search, you can view the running costs of a property and get an idea of what you could expect to spend on monthly bills, including Water, Energy and Council Tax, 

PC Case Study: I spent approximately £100 a month on utility bills (electricity, water, Broadband) when I had my one bedroom flat. 


Naturally when you move into a property you will want to make it your own. The costs of redecorating a property can quickly build up if you do not manage your outgings.

PC Tip: Consider what decorating/refurbishing work needs to be done before you put an offer in. The amount of work that you feel needs to be done should be reflected in your offer.

PC Tip: Not all decorative works need to take place immediately. Write a list of what needs to be done immediately and what can be done in the future.

*This article is for general awareness only and does not constitute legal or professional advice. The law may have changed since this page was first published.

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