Moving costs for buyers and renters soar: top money saving tips
Homebuyers and renters are having to use up the majority of their savings to cover the cost of moving, potentially leaving them with no financial safety net.
The cost of moving is up 25% for homebuyers and 13% for renters over the past decade, research shows.
It costs an average £1,469 for renters to move home, including security deposit, agency fees, van hire, child minder fees and moving materials. However, the average renter only has £1,522 saved in cash, meaning nearly all their safety buffer will go towards moving home.
The study by Post Office Money and Centre for Economics and Business Research (CEBR) found 53% of 22-29-year-olds have no money saved.
However, there is some hope for renters as the government has proposed a ban on letting agent fees which is likely to come into effect next year, helping them saving around 16% – £235.
For homebuyers, the cost of moving is dearer and they’ll need to budget an additional £10,132 to move. However, many only budget for around £6,782 of costs.
Estate agent fees make up a third of the costs (£4,815), while stamp duty adds around £2,019. Surveyors, conveyancing and removals also add to the bill.
Chrysanthy Pispinis of Post Office Money, said: “Moving can be a time of financial pressure and people will often need to draw upon any savings they have. However, they are unlikely to have ear-marked this money specifically for moving, leaving them with no financial safety net. Having a regular savings habit – putting money aside on a ‘little and often’ basis – can help with these unforeseen costs.”
Tips for moving
Budget in advance: Many people wait until the point they move to reckon with the costs of moving home. Making an itemised checklist of potential moving costs and making sure you budget for these well in advance is essential to making sure you have enough set aside.
Letting or estate agent fees: The fees differ significantly, so consumers can massively benefit from shopping around. There are alternatives to high-street agents which can often greatly reduce the cost for cash-strapped movers.
Get a number of quotes: When enlisting a removal service or a self-drive van hire for moving day, be sure to get a number of quotes from different companies; you may be able to get a cheaper deal or even use them to negotiate a better price.
Cut down on removal costs: Movers can save money by sourcing moving materials second hand, such as by getting discarded boxes from the local supermarket. Another way to reduce these costs is to cut down on the amount of items you are moving by having a ‘moving clear-out’ and disregarding any items which you don’t need.