Budget For All The Costs Of Moving Home

Thu 15 Oct 2020

At ADM Residential, we know the stamp duty holiday has ignited a lot of interest and activity in the property market. Many people appreciate the chance to save money, but even with the stamp duty holiday in place, moving home can be costly.

There are other costs to consider when you move home, and we are here to help you plan accordingly. We are pleased to say we have assisted many homeowners in and around Huddersfield to move home, and if you are looking for assistance, we can help.

We provide a property valuation service that ensures you start the sales process in a correct and confident manner. If you are looking for guidance on selling your home, or you want to arrange a property valuation, please get in touch.

You must budget for moving home

A recent study carried out by Comparethemarket reminds people of the importance of properly budgeting for moving fees. While stamp duty fees have been lowered, which is positive news, there are many other costs to consider. The impact of not budgeting for conveyancing costs, moving fees and mortgage fees can impact a mover.

The study by Comparethemarket suggests 54% of respondents found the moving process to be more expensive than they initially thought or planned for. The survey found that moving costs for many people now reach £9,500; although respondents were speaking before the stamp duty holiday came into effect.

Watch out for these costs when moving home

When you exclude the SDLT, the deposit for the property and estate agency fees, the five leading costs for home-movers were found to be:

Conveyancing fees
Buying new furniture
Mortgage fees
Professional removal services
Decorating costs

42% of respondents said they experienced unexpected costs during the moving process. The survey findings suggest the average spent on unexpected costs when moving home was close to £1,500. The leading unexpected costs, or higher than planned, costs in moving were mortgage product fees, conveyancing charges and supplies for moving home.

Moving to a larger home is also costly

If you plan on moving to a larger home, allowing yourself more space, you should plan for spending more. Rightmove analysed the cost of moving up, and the headline figures from the analysis are as follows:

Home movers are having to pay almost £68,000 on average to move from a two-bed flat to a three-bed house outside London, £4,000 more than this time last year
Asking prices of two bed flats have increased by 15% over the past five years, while three bed houses have jumped by 20%, leading to the record trade up gap
The smallest jump from a two bed to a three bed is in Swansea where the difference is £11,000 on average, and the biggest jump is in Esher, where there is a £300,000 difference
The trade up gap increases to over £183,000 for those trying to make the jump from a three-bed house to a four-bed house, up from £180,000 last year
The trade up gap for second-time buyers has grown to a record £67,761, as the need for space drives up prices in the three-bedroom home sector

Buyers need to be prepared for the cost of moving home

Rightmove’s Director of Property Data Tim Bannister, explains: “People who bought a smaller home five years ago and are now hoping to trade up will find it’s harder to afford the next rung of the ladder because of the different pace of the sectors. Those who really need the space and are struggling to trade up could widen their search area to find alternative places where they can get more for their money, or they may need to compromise on the type of home and opt for a terraced rather than detached. The cash jump is even bigger from three to four beds, likely due to four bed homes often having additional bathrooms, bigger gardens, garages or outbuildings, as well as an extra bedroom, but traditionally homeowners stay in their second home longer and so more people may have built up enough equity to make the jump to their forever home.”

If you are selling your Huddersfield home, contact us today. You can book a valuation or just chat about how we make a difference in selling your home. Of all the estate agents Huddersfield vendors can call on, we like to think we make a difference in selling local homes, so contact ADM Residential today.