You are here: Home - Household Bills - News -

Many underestimate the cost of moving home

Written by: Christina Hoghton
The cost of moving home has increased to almost £10,000, according to Post Office Money.

It found that total moving costs increased from £7,590 in 2006 to £9,472 by the end of 2016, and noted that the hikes would have been significantly higher if not for government changes.

The removal of the Stamp Duty “slab” system, which saw all homeowners charged at a percentage of the price paid for their property, resulted in the average Stamp Duty bill falling from £4,227 at the end of 2014 to £1,774 at the end of 2016.

Still rising

Post Office Money predicts that the additional costs of moving will hit £12,267 by the end of 2020 and would-be buyers will face an even greater challenge for the amount they need to set aside.

But a worrying two-thirds (65%) of prospective home buyers are still underestimating the amount they will need to set aside.

One of the most significant moving costs to increase over the past 10 years is the fee charged by surveyors. This cost has jumped by 53% since the end of 2006 (from £498 to £764 in 2016).

Costs soar in the South East

Those hoping to move in the South East have been one of the hardest hit by increases, with additional costs rising by 72% in the last 10 years (from £8,809 in 2006 to £15,114 in 2016). But London remains the most expensive place to move home with an average cost of £26,673.

The additional costs of moving home remain the highest in London and residents of the capital are the most likely to underestimate the additional costs, with prospective buyers in the city budgeting £8,838, significantly less than the £26,673 they should expect to spend.

Owen Woodley, managing director at Post Office Money, said: “Forecasts indicate the cost of buying and moving will only continue to rise over the next five years, even with the impact of revised stamp duty rules introduced to reduce the impact on prospective buyers’ wallets.

With research indicating that 65% of these buyers have underestimated how much they should budget for these costs, careful and considered budgeting is essential at a time when they are already likely to be financially stretched.”

Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
petrol prices rise
Supermarkets cut petrol prices

Morrisons has sparked a petrol price war as it cut the cost of diesel and unleaded fuel by up to...