First-time buyers may be hampered by money concerns

Thursday, June 10th 2010

Money concerns could be the reason one in six first-time buyers are kitting out their new home for less than £1,000.

While the national average is £3,782, a number are doing it for little more than a quarter of this, research by Santander shows.

Those feeling the pinch more than most may reside in the East Midlands, with new home buyers paying out only £2,892 to decorate and furnish their property.

"Many first time buyers are so focused on saving for the deposit and fees that they don't have as much as they'd like left in the bank for furniture and furnishings," says Phil Cliff, director of mortgages at the lender.

Some could find seeking to reduce bills on a variety of utilities will help their cash flow and free up money to add a sofa or kitchen worktop.

Earlier this week, Santander revealed young people are saving more than anybody in Britain - perhaps to fund a home purchase.