The Cost of Moving House in the UK
Moving to a new house can be an exciting and transformative experience. However, it’s essential to be aware of the costs associated with such a significant life change. In this article, we will explore the average expenses you can expect when moving house in the UK and provide tips to help you manage your costs effectively.
The Rising Cost of Moving House
In recent years, the average cost of moving house in the UK has reached unprecedented heights. According to research conducted by price comparison site Really Moving in October 2022, the expense of relocating in England has surged to an astonishing £14,207. This figure represents a considerable 21% increase from the previous year’s average of £11,777.
The company’s annual Cost of Moving report analysed a substantial 714,000 quotes and identified a notable upward trend in moving expenses. Interestingly, these soaring costs persist despite the substantial reductions in stamp duty land tax announced in September 2022.
Factors Driving the Cost Hike
Several factors contribute to the significant increase in the cost of moving house. The most prominent driver is the sharp rise in house prices over the past year. As of December 2022, the average UK house price stood at £294,329, reflecting a 9.8% surge compared to the previous year, as reported by Land Registry data.
The skyrocketing house prices have pushed some buyers beyond the stamp duty threshold, resulting in additional expenses. Second-time buyers, for instance, now face a 5% tax on the portion of their home’s value exceeding £250,000. Furthermore, services charged as a percentage of a property’s purchase price, such as estate agent fees, have also witnessed substantial increases. The average estate agent fee rose by 15% from the previous year, amounting to £4,544.
Other expenses associated with moving house have also experienced upward adjustments. Conveyancing fees, for example, increased by 21% to £2,003 in 2022, while removals fees saw an 8% rise, averaging £649. On the other hand, surveying costs observed a price reduction of 10%, settling at £456.
Moving Costs for Second Time Buyers
Let’s take a closer look at the average cost breakdown for second-time buyers in England:
- Stamp duty: £6,500
- Estate agents fees: £4,544
- Conveyancing: £2,003
- Survey: £456
- Removals: £649
- Energy performance certificate (EPC): £55
- Total: £14,207
Moving Costs for First-Time Buyers
For those embarking on their first homeownership journey, moving costs tend to be more modest. Here is the average cost breakdown for first-time buyers in England:
- Stamp duty: £0
- Estate agent’s fees: £0
- Conveyancing: £1,342
- Survey: £456
- Removals: £400
- Energy performance certificate (EPC): £0
- Total: £2,198
Regional Variations in Moving Costs
Moving costs can vary significantly depending on the region. Some areas experience more substantial increases than others. For instance:
- The Northwest witnessed a 39% surge in fees, primarily due to house price hikes pushing more individuals over the stamp duty threshold.
- Costs rose by 30% in the East Midlands and Yorkshire and the Humber.
- London, known for its higher property prices and subsequently higher stamp duty tax rates, has the steepest average moving cost in the country at £28,247. However, the capital’s fees only rose by a relatively moderate 13% from 2021.
Effective Tips to Reduce Moving Costs
While moving house will always incur expenses, there are strategies you can employ to minimise your financial burden.
Compare Service Providers: Take the time to research and compare the prices and reviews of conveyancers, surveyors, removers, and estate agents. By choosing well-priced and reputable professionals, you can potentially save a significant amount of money.
Timing is Key: Try to plan your move during quieter periods, such as the new year, when there is less competition for services. Avoid peak times, like Fridays, as most people prefer to move then. Some removal companies offer mid-week deals, which can help keep costs down.
Book Removal Services in Advance: Arrange your removal services well in advance and ensure that the company visits your home to assess the volume of your belongings accurately. By doing so, you only pay for the space you need, saving you from unnecessary expenses.
Moving house can be an expensive endeavour, but with careful planning and consideration, you can effectively manage your costs. By following these tips and staying informed about the average expenses associated with moving, you can make the most of your budget and ensure a smooth transition to your new home.