First time buyers aim for grand designs

First time buyers spend around £3,782 each on kitting out their new home - the equivalent to three per cent of the average national house price - according to new  research from Santander Mortgages.  However, around one in six cash conscious first time buyers do it for less than £1,000.

On receiving the keys, 43% of first time buyers spent their first £1,000 on sofas and armchairs, followed by beds (41 per cent) and kitchen appliances (34 per cent).  Around half a million first time buyers opted for pleasure over practicality, however, and put part of their first grand towards a house warming party.

The majority (59 per cent) of first time buyers said they managed to get homes fully furnished within 12 months but one in ten were still buying the basics three years down the line.

Despite many of today's first time buyers feeling the pinch, Santander's research shows that they spend nearly twice as much on filling their home as those in the 1970's, when the average amount spent was a modest £1,684.

Phil Cliff, Director of Mortgages at Santander said "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.  That's why we're offering fee-free mortgages and £100 cashback on our home insurance to all current account customers, which could save them up to £1,095.  This could make a massive difference to first time buyers at a stage when many will need some extra help."

Santander's study also reveals that first time buyers in London are the most likely to splash the cash on contents, spending on average £5,495. This is nearly double the amount spent by those in the East Midlands, where the average expenditure is a modest £2,892.