Moving into your first home? We shed light on the potential costs which you may not have allowed for
1 Deposits
If you're renting, a deposit is normally required from the landlord to cover the cost of any damage or unpaid rent that you may have incurred when you leave. The figure is typically a month's rent. They may also require some rent in advance.
2 Council tax
The seller/landlord should know which band the property is in. If not ring your local authority to discover the bad news.
3 Electricity and gas
It's a maddening fact that if you have no history with the utilities many will charge you a deposit before they take you on as a customer. Their attitude is that for the first quarter you make use of them they are giving you an unsecured loan. Take British Gas, for example. If as a new customer you do not get past their credit rating - and if you are young with no credit history then you will almost certainly fail - you have three options: a) get a parent to guarantee the bill will be paid b) get a pre-payment meter fitted which is inconvenient or c) give them a £200 deposit which they will keep for a year and then pay back with a little bit of interest.
4 House insurance
Buildings Insurance is compulsory in Britain but you do not have to pay this if you are renting. Areas which are prone to subsidence, for example, those built on the clay band which extends south of a line connecting Bristol and the Wash will cost more. Contents insurance is not compulsory but you would be mad not to take this out. Make sure you have enough cover to include everything. You need to ensure that both policies are in operation on the day you take possession. Your mortgage company will be keen that you buy these policies from them, as the commission is another source of valuable income. You are not obliged to do this and we recommend that you shop around for the best available deals.
5 TV licence
Get one. It's not worth the humiliation of a court appearance if you get caught.
6 Furniture
It's better to buy sparingly and well rather than many cheap and flimsy items. Check out auction rooms that specialise in house-clearing. Do not buy second-hand mattresses, though. Buy a good new one and it should last for years.
7 Fares
Work out your transport costs. If living in London, check out which Tube zone you are in.