There’s something incredibly exciting about moving house. It gives you a fresh start, new possibilities and gets you to your dream home.
But, there is a cost to these benefits – it’s why people don’t move house every year!
If you’re considering a move, you’ll need to weigh up the enjoyment of it, against the costs involved.
And, even for those who know resolutely that they want to move, it’s still important to have a clear understanding of the costs involved.
So, to help keep homebuyers in an informed position, and to help you decide whether now is the right time for you to move, we’ve shared this simple guide to the cost of moving house.
What is the average cost of a house move?
According to Barclays, the average cost of moving house in the UK is £11,777.
But this ballpark figure can vary greatly, depending on whether you’re a first time buyer, and where in the UK you live. You will need to consider the costs involved with:
- Stamp Duty
- Property Surveys
- Valuation
- Solicitors
- Estate Agents
- Home Insurance
- Council Tax
- Lease (if applicable)
- Bills (Gas, Electricity)
- Moving Costs (Furniture, Items)
So, why is it so expensive to move?
Well, it’s down to a number of different factors. Firstly, there are the taxes and legal costs involved. These include things like stamp duty, the valuation fee and the solicitor’s costs.
Then, there are the practical costs of moving, like hiring a van, or paying for a removal company.
If you aren’t sure of any of these terms, don’t worry – we’ve broken all of these costs in more detail below.
Stamp Duty
Stamp duty is a tax, which you might have to pay if you are buying a residential property in England or Northern Ireland (properties in Scotland are charged the Land and Buildings Transaction Tax (LBTT), and in Wales the Land Transaction Tax (LTT)).
If your property costs less than £125,000 (or you qualify for first-time buyers’ relief) then you won’t have to pay stamp duty.
And If you’re a first-time buyer, you won’t have to pay stamp duty on a property that costs less than £300,000. If your property costs less than £500,000, you will pay stamp duty at a discounted rate.
The stamp duty rates are as follows: (updated to reflect the Government’s September ‘Mini-Budget’ 2022)
- Up to £250,000 – 0%
- The next £675,000 (the portion from £250,001 to £925,000) – 5%
- The next £575,000 (the portion from £925,001 to £1.5 million) – 10%
- The remaining amount (the portion above £1.5 million) – 12%
Property Survey
As its name suggests, a property survey is an inspection of a property, undertaken on behalf of the person(s) that want to buy it.
The survey assesses the property’s condition in a report, which makes the involved parties aware of any issues that they may not previously have known about.
The cost of a property survey starts at £300. But this can rise to thousands, depending on the size of the property and whether you choose to pay for a more thorough, in-depth survey.
You don’t legally need a property survey. But, if you don’t have one, you could pay huge sums in unexpected repairs (costs which the previous tenant should have been responsible for).
Valuation Fee
A valuation fee will come from your mortgage lender, and it is the cost they charge for commissioning a mortgage valuation.
A valuation fee is usually around £100.
Solicitors
When buying (and selling) a house, you normally need a solicitor or licensed conveyancer. They will conduct all the required legal work for you.
The average costs for this service are around £850-£1,500.
Estate Agent Fee
Estate agents will charge you a few for buying and selling through them.
While this will vary from estate agent to estate agent, the usual cost for this ranges at around 0.9 – 3.6%.
Home Insurance
You may choose to pay for home and contents insurance on your new property. According to Money Supermarket, in 2021, this cost an average of £140 a year.
Council Tax
You will also have to start paying council tax on your new property. The cost of this will vary depending on the size and location of your house, and whether you’re living on your own.
You can find out how much this will cost you on the GOV.UK website: https://www.gov.uk/council-tax-bands
Lease
The cost of drawing up a lease agreement will need to be added if you plan on renting the property you are buying.
A lease is a legal contract, which states the terms of the rental, and it is signed by both the property owner and the renter.
Bills
You need to check with your current energy providers, if they have an exit fee. Some tariffs for gas and/or electricity may have a charge for ending your contract early when you move to a new property.
Moving Costs
Alongside these fees, you will need to pay for all your possessions to be moved to your new house.
These costs will vary based on how much you have to move, how far you have to travel, and who you enlist as your removal company.
But, while you could do it yourself, we think that paying for a removal company is well worth the investment. It minimises the risk of any of your possessions being damaged, and ensures that everything is moved on time and smoothly. In short, it takes a lot of stress off your plate.
At Robert’s & Denny’s Removal Services, our team of professional movers have helped property owners across the country. With such extensive experience under their belts, you can trust our team to make your move as hassle-free as possible.
So, if you’d like to find out more about our moving services, give us a call today on 01322 310055.
