The additional costs of moving home in the UK have increased by more than half over the last 10 years and are now £11,844, according to new research.
However, prospective home buyers expect to spend only £6,895 and some 84% underestimate the cost of moving, which included agent fees and conveyancing costs, the study from Post Office Money shows.
It also reveals that estate agency fees have increased by 61% over the last decade while house prices have risen by 39% on average and all these extras are on top of the £90,889 the average buyer needs to find for a deposit.
The figures, by the Centre for Economics and Business Research (Cebr) for the Post Office, shows that costs were just £7,475 in 2004 and increased by 20% in the last year alone.
People hoping to buy in the next three years expect to spend just £6,895 on moving costs, just 58% of what they should actually be budgeting.
‘With prospective home buyers’ attention firmly fixed on saving for a deposit, the additional costs of moving can often come as an afterthought, particularly for first time buyers,’ said John Willcock, head of mortgages at Post Office Money.
‘Although house prices may continue to rise there are steps buyers and movers can take to reduce the amount they pay on top of this. Planning ahead is essential and potential homebuyers should be setting aside savings specifically for these costs. These extras should be considered as part of the overall cost of buying or moving home,’ he added.
One of the most significant moving costs to increase over the past 10 years is the fee charged by estate agents. This cost has jumped by 61% since the end of 2004 from £3,229 to £5,214 in 2014 compared with a 39% increase in house prices over the same period as estate agents seek to keep up with changing house prices.
Other fees to consider when moving to a new home include conveyancing costs and surveyors’ fees which have increased by 37% from £1,039 in 2004 to £1,419 in 2014, and 51% from £402 in 2004 to £607 in 2014, respectively over the last decade.
Even renters who move between listings are not exempt from moving costs. The amount charged by the average removals service has increased by 21% over the past 10 years from £855 in 2004 to £1,034 in 2014.
Those hoping to move in the South East have been hardest hit by these increases with costs jumping by 97% in the last 10 years from £8,907 in 2004 to £16,510 in 2014. However, London remains the most expensive place to move home with an average cost of £27,946.
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Source: Property News Spain