Britons 'overspend on new property'

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Britons are going significantly over their budgets when buying a new property, new research shows.

Experienced buy-to-let investors will understand the importance of sticking to a budget when building up their property portfolios, yet in the wider housing market people seem to find this difficult to do.

Around 90 per cent of those questioned admitted that they go over budget by at least £20,000 when buying a new home, while one in five said that they overspend by around £50,000.

Findaproperty.co.uk, which carried out the research, said that an inability to plan financially for a house purchase meant that almost half (46 per cent) of people ended up overstretched.

Stamp duty, legal fees, furniture costs, removal costs and renovation were among the expenses straining people's budgets, with Findaproperty.co.uk's Mike O'Flynn commenting that buyers were being "led by their hearts - not their heads".

Mr O'Flynn said: "If you're considering renovating a potential new home, it's important to get professional quotes so you understand the full costs involved, before taking the plunge and making an offer."

Birmingham Midshires calculates that a fifth of people planning to buy a new property in 2007 will do so for investment purposes.

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