Buyers need to double their moving budget
Moving costs have increased by a whopping 65% since 2005, according to Post Office Money, and now stand at an average of £13,219.
The Post Office’s Cost of Buying and Moving study, compiled in conjunction with the Centre for Economics and Business Research (Cebr), found that these costs, including Stamp Duty, legal fees, estate agent costs and removals, increased from £8,025 in 2005 to £13,219 by the end of 2015.
However, they have decreased since last year because of the average Stamp Duty bill falling from £8,166 to £4,372, which brought the overall cost of moving home down from last year’s high of £16,381.
Double your budget
One of the biggest worries is that 85% of prospective homebuyers are still underestimating the amount they will need to set aside. Those hoping to buy in the next three years expect to spend just £7,496 on moving costs – just over half (57%) of what they should actually be budgeting.
And these expensive moving costs are in addition to the £94,280 they need to find to pay for a deposit on the average home. This figure remains high even for first-time buyers, who can expect to pay an average £48,198 deposit.
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.”