The cost of moving home is nearly double what most buyers expect it to be, new research has revealed.
According to Post Office Money and the Centre for Economics and Business Research, homebuyers are spending an average of £13,219 on moving home compared to the £7,496 they expect.
The study showed that over the past 10 years the cost of moving has increased by 65%, though costs have fallen 19% in the last year due to stamp duty reforms.
These expensive moving costs present a challenge for prospective home buyers and movers who also need £94,280 to pay for a deposit on the average home. This figure is high even for first-time buyers, who can expect to pay an average £48,198 deposit.
With forecasts indicating the additional costs of moving will have hit £17,717 by the end of 2020, these would-be buyers will face an even greater amount they need to set aside.
John Willcock, head of mortgages at Post Office Money, said: “It is easy to focus so much on saving for the all-important deposit that people forget the additional costs that come with moving, particularly for first-time buyers who have never been through the process before.
“Planning ahead is vital and potential homebuyers should factor these costs in early on to avoid being faced with stressful, last-minute bills.”
Over the past 10 years the fee charged by estate agents has jumped by 60% since the end of 2005, from £3,552 to £5,697.
Other fees to consider when moving to a new home include conveyancing costs, which have increased by 36% since 2005 to £1,486. Surveyors’ fees have gone up 34% from £470 in 2005 to £627 in 2015.
The amount charged by the average removals service has also increased by 17% over the past 10 years to £1,037.
Those hoping to move in the South East have been hardest hit by these increases, with costs having more than doubled in the last 10 years from £9,267 in 2005 to £18,710 in 2015. London remains the most expensive place to move home with an average cost of £30,770.
Willcock added: “Forecasts indicate that 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 85% of these buyers have underestimated how much they should budget for these costs, many could be left out-of-pocket at a time when they are already financially stretched.
“We are aware of the barriers that people can face when they are looking to purchase their first home or move further up the ladder. This is why we offer a range of different mortgages aimed at a wide variety of buyers.”
