Moving home is often cited as one of life’s most stressful events, but it is also an exciting time, with the prospect of starting afresh and having a new space to work with.
However, you will need to keep in mind the costs involved in the moving process, such as your deposit, conveyancing fees, stamp duty and more.
In fact, a study by reallymoving revealed that the average cost of moving home in the UK reached £10,414 in 2019.
With this in mind, here at Balgores Property Group we take a closer look at the additional costs and fees homemovers should be mindful of when moving home.
Stamp duty and conveyancing fees push moving costs up
Rising stamp duty bills (+4%) and conveyancing fees (+5%) are the key factors driving up costs for homeowners, according to the study. This can be attributed to a marginal 1% annual rise in house prices.
Stamp duty alone now makes up almost half (44%) of the total cost of moving home, with the figure rising to 65% in London.
Homeowners who are both buying and selling now pay on average £4,625 in stamp duty, while conveyancing costs stand at £1,490 including disbursements and expenses.
Other moving expenses fluctuate
Removal charges have also increased by 1% over the last year to £480 on average, although the cost varies depending on the distance of the move and the number of possessions transported.
Meanwhile, the cost of an Energy Performance Certificate (EPC), remains unchanged at £55.
It’s not all doom and gloom, though. Other expenses have dropped slightly over the last year, such as a Homebuyer Report, which now costs £408 (-4%), and estate agent fees, which have dipped 1% to £3,356.
Moving costs for first-time buyers
With the exemption of stamp duty for first-time buyers on properties up to the value of £300,000, moving costs for this demographic across the UK are considerably lower at an average of £1,613.
What’s more, a 2% annual increase in overall costs has been driven mainly by marginal rises in removals and conveyancing fees.
What other costs should you look out for when moving?
With a variety of moving costs to consider, it’s crucial that you understand what to expect when moving home. Below are some of the costs to bear in mind.
· Estate agent fees: Estate agent fees will vary depending on your agent and type of contract. Average high street prices are currently around 1.3% including VAT.
· Mortgage fees: This includes a booking fee of between £99-£250, an arrangement fee of up to £2,000 and a mortgage valuation fee of between £150-£1,500.
· Stamp duty costs: Charged on properties worth more than £125,000, these costs depend on the purchase price of the home, but first-time buyers pay no stamp duty on the first £300,000 for properties priced up to £500,000.
· Valuation and survey fees: A property valuation can set you back between £150-£1,500, while a full survey can cost you between £250-£600.
· Legal/conveyancing costs: Local searches done by your solicitor can cost between £250-£300. Generally, legal fees can be between £500-£1,500, including VAT at 20%.
While there are many components of the moving process, having a strict budget will allow you to break down all costs and fees more efficiently, minimising any stress and hassle. Once you’ve found your dream home to move into, be sure to check out our top tips for a stress-free house move.
At Balgores Property Group, we have many branches across Essex and Kent and can help you to get your property sold for the best possible price. For more information on our services, please get in touch with us at one of our offices.
Additionally, you can see how much your home could be worth on the current market by requesting a free and instant online valuation today.