According to a new report, it now costs nearly £12,000 in additional fees to move house – and that’s before you even get to the huge deposit that you have to put down.
From paying for a solicitor, removal companies and forking out on stamp duty - these costs have jumped 20% since last year, and a massive 60% since 2004.
Unsurprisingly, the most expensive place to move house is London, where it costs you, on average, £28,000 in extra fees! South Eastern movers are spending £16,500, and those in the South West being charged an average of £10,400.
The cheapest place to move house is Northern Ireland, where you’ll only spend around £6,500 on all of the extra charges. Scottish movers spend just over £8,000 on extra fees, while it’s less than £7,300 for those moving house in Wales. Even though these are comparatively low amounts to the rest of the UK, they could still come as a sting if you haven’t included them in your budget.
So, it’s a good idea not just to think of the deposit, but the other expenses too. Read on to find out what the report said were the main costs to consider.
One of the biggest costs is stamp duty – last year, movers paid an average of £3,620 on this. Despite the recent reforms, rising house prices mean that we’re paying well over the odds compared to what this cost us in 2004, when stamp duty was just under £2,000.
You’ll also have to pay estate agent fees, costing over £5,000 on average. When you’re selling your home through a traditional estate agent, you’re paying them to advertise it, get buyers in, and show off the property in the best light possible. There are alternatives in the form of online estate agents, which can cost you just a few hundred pounds, but these are still relatively small-scale and require more work from your end.
You’ll also need to consider surveyor fees, which cost buyers, on average last year, just over £600. Paying for a survey to understand if there are any issues with the property is a good idea as if there are major issues, you could try and get a discount on the asking price, or walk away - saving you money further down the line.
This is to cover the cost of a legal team drawing up a contract, dealing with things like the price you’ve agreed to buy the property for, boundaries, any fixtures and fittings, planning restricting and so forth. The paperwork can be complicated, which is why you need a professional to carry it out. Last year, these fees cost, on average £1,419.
On average, people who moved house last year paid just over £1,000 in removal fees. If you’ve a big house, these costs will be more expensive than if you’re just moving from a one bed flat – so do your research when looking for a removals company to make sure you get the best deal. If you don’t have much stuff, it may be cheaper to hire a big van and recruit some family and friends to help you with the heavy lifting!
The best way to cope with the extra costs of moving house is to plan ahead so you’ll know what you’ll have to fork out for, and then save up the money. Don’t just focus on your deposit, include the extra costs we’ve talked about and consider them as part of the overall cost of buying a new home.
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