First time buyers add £1.9 billion the economy

In addition to the money spent on actually buying the property, first time buyers also spend on average another£8,000, says a report by Lloyds TSB. Adding together stamp duty, furnishings and moving costs, the total amount spent in 2012 was £1.9 billion.

The report breaks this down into an average of around £3,000 in legal fees, valuation fees and other costs. Then spending on household items including white goods, curtains and carpets plus home improvements comes in at £5,000.

During 2012, it is also estimated that first-time buyers generated £270 million in revenue for the Exchequer through stamp duty.

Lloyds TSB also say that first-time buyers supported 500,000 home moves in 2012, and these 'second-steppers' typically spend more on the costs of moving than first-time buyers (around £9,000 on average).

Marc Page, Lloyds TSB Mortgage Director, said: "There can be no doubt that first-time buyers have a significant economic impact. However, it has been a difficult time to take that first step on the ladder with many struggling to raise the required deposit."

Earlier this month, Halifax estimated the annual cost of owning and running a home had risen by £179 over the last 12 months, to £9,590. Total annual costs of owning and running a home are highest in London at £12,094, 26 per cent above the UK average and 52 per cent higher than in Northern Ireland which has the lowest costs.