Swot up before you buy: the top 10 ways to cut the cost of buying your new home

There can be no doubt that London’s long-suffering first-time buyers face a Grand National-level series of obstacles to get on to the property ladder.

But there are ways to cut the cost of your first home by being smart and flexible, and here are 10 of them:

1. MOVE DOWN THE TRAIN LINE

The time-honoured way to cut costs is to move down the train line. If you can’t afford your top choice area, accept you might have to live a few Tube stops away from it. And since you won’t be the only buyer “rippling out” from a desirable area to somewhere more affordable and lower-profile nearby, you might also see outperforming price growth.

2. GET TO KNOW LONDON

Don’t restrict your house hunt to areas you already know well. Do a search on one of the main property portals to work out where you can afford a flat, then sacrifice a few weekends to tour locations you’ve never visited to see what they are really like. You might be pleasantly surprised by Eltham, Charlton, Bounds Green and the like.

3. HAGGLE — POLITELY

Do your research on the prices of similar properties in the area, and once you are clear about what a fair price is, don’t be shy to make an offer below the asking price, as you are in the strong position of house-hunting in a buyer’s market.

But unless you feel a property is madly overpriced, Hugh Blake, associate partner at Carter Jonas, says making a really unrealistic offer is just silly.

He recommends pitching your offer at five to 10 per cent below the asking price. “Otherwise you’re likely to alienate the vendor,” he warns.

4. DON'T ASSUME NEW-BUILD PRICES ARE FIXED

Some developers will give discounts, particularly in the current slow market. James Cameron, director of online estate agency Vesper Homes, says: “If you are buying a new build, try offering 10 per cent below what the developer is asking for, and get a parking space thrown in as well. We know of one large development in London where this approach has worked recently.”

5. THROW IN SOME FURNITURE?

Alternatively, ask the developer to throw in a furnishings pack to get you started. “These can be worth £5,000 to £7,000,” says Cameron.

6. DON'T SKIMP ON THE SURVEY

If you are buying a “second-hand” home, one thing you absolutely shouldn’t skimp on is a survey. Once you get the report, go through it thoroughly — and your surveyor should be willing to talk you through the findings, too.

If there is a major problem but you still like the property you can try to renegotiate the price to take into account the cost of putting it right. Get quotes for the work from three builders first to prove your request is reasonable.

7. SAVE ON STAMP DUTY

If you can find a property for less than £300,000 you won’t have to pay any stamp duty, which is always one of the most onerous buying costs when joining the property ladder. And if you buy for less than £500,000 you will only pay stamp duty at five per cent on anything you spend over £300,000.

8. GET YOUR SOLICITOR TO BARGAIN FOR YOU

It is always a good idea to offer to buy your vendor’s curtains and blinds, as well as kitchen white goods and any furniture you like the look of. Get your solicitor to do the talking.

9. TAKE YOUR TIME WITH THE MORTGAGE

Don’t rush into a mortgage agreement just because you are so surprised and grateful somebody is willing to lend you a six-figure sum. And don’t assume the lender you bank with will give you the best deal — there is no loyalty bonus.

“Talk to the mortgage lenders directly, look on comparison websites, or speak to a mortgage adviser who will have in-depth knowledge of the market,” advises Jo McDonagh, sales director at Shanly homes.

10. PHONE A FRIEND

Van hire and help from some beefy friends is always going to be cheaper than a professional removal firm, so don’t be shy to call in favours and emotionally blackmail your nearest and dearest.