Cost of moving home up by over a half in 10 years

The cost of moving move has increased by nearly 60 per cent over the past decade, new research by Post Office Money and the Centre for Economics and Business Research (Cebr) reveals.

The additional costs homemovers incur have grown from £7,475 in 2004 to £11,894 by the end of 2014 and the cost increase in the past year alone was 20 per cent, the study shows.

Despite the considerable rise in expenses, the majority of people (84 per cent) are still not realising the true cost of moving. The study revealed that those planning to purchase a new home in the next three years expect to spend £6,895 on average to cover extra costs, while the actual amount is more than half (58 per cent) that sum.

Costs are set to rise further in the next five years, the researchers say and estimate the average additional expenses for moving home will be £15,414 in 2020.

John Willcock, head of mortgages at Post Office Money, commented:

“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 who are taking their first steps on the property ladder. 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 ‘add-ons’ should be considered as part of the overall cost of buying or moving home.”