Homebuyers spend an average of £10,010 on their homes in the first 12 months of ownership, according to new research from Aviva.
The insurer said that with around 679,000 owner-occupier moves happening every year, this puts the first-year home makeover tally at around £6.8 billion across the whole of England.
The study of around 1,000 recent homebuyers reveals redecorated bedrooms (47%) and living rooms (43%) are the most popular choices for first-year transformations, although 18% of recent movers install new kitchens in the first year, and the same splash out on new bathrooms.
A love of fires is evident too with 8% investing in stoves and fireplaces, whereas 6% go to the extent of building an extension. 24% indulge in new furniture, while 17% purchase new technology items such as new TVs and surround sound systems.
However, the research reveals that people are far more likely to make cosmetic changes to their new homes than investing in home security. Only 8% of new movers said they purchased any sort of security system in their first year.
Furthermore, fewer than half of recent movers said they updated their home insurance (buildings or contents) after they updated their properties, meaning that some homeowners may be underinsured if they have made significant purchases or changes to their homes.
The research has been compiled to coincide with the launch of the Government’s Help-to-Buy ISA which is available to first-time buyers from 1 December 2015.
And while the majority of people (63%) use savings to pay for their renovations, 19% put their expenses on credit cards, and 10% are happy to ‘buy now, pay later’ with store credit.
The above costs are all in addition to the cost of actually moving into the home. In July 2015, Aviva research showed that first-time buyers underestimate the cost of buying a home by £6,481.
Adam Beckett, propositions director for Aviva, said: “Buying a new home is incredibly exciting, so it’s understandable that people want to put their stamp on their new property and make it feel like their own. It’s also no surprise that some people run away with their renovations, and one in three end up spending more than they intended!
“If people are making a lot of new purchases, we’d encourage them to review their home contents insurance, just to make sure they’re adequately covered in case anything did go wrong. And if people are making significant changes such as building an extension or a loft conversation, we’d also recommend that they get in touch with their insurer as this could mean that they need to update their buildings insurance too. Homes are certainly people’s castles so we want to make sure the right cover is in place.”
