The average household in Britain spends £23,800 on the ‘hidden’ costs of moving house over their lifetime, which equates to more than the average UK salary, according to a new study by The Co-operative Bank.
As the main focus is often on the house price itself, these ‘hidden’ costs, which include all the extra expenses apart from the actual house price – such as solicitor’s fees, stamp duty, removal costs and estate agent’s fees – can often be often underestimated, despite the fact that collectively they add up to more than £10 billion for the total population.
Despite all the hidden expenses involved with moving, only half of those questioned (56%) had a contingency fund in place to meet these costs. Other home movers get themselves deeper into debt by taking out further loans or borrowing on credit cards (15%), whilst some people are still relying on relatives for that extra help (5%).
John Barker, Head of Mortgages at The Co-operative Bank, comments “As house prices have continued to increase it is important for people to look at the bigger picture in terms of costs. Hidden costs that are not budgeted for can soon mount up and by having a contingency fund in place it will enable people to be fully prepared for any eventuality. ”