Relocating to a new home is a common occurrence. No matter what our circumstances may be, we will always encounter it, whether it be for practical reasons, as a gateway to a better home, or simply as the perfect place we want to live…
Whenever moving day approaches, and after you’ve waded through the cumbersome process of stamp duty, home inspections, solicitor fees, liability coverage, and mortgage arrangement payments, cost takes precedence.
In this article, our experts at Thomas Pardy will go through every cost you can incur when moving home and hiring a removals company in 2023, so you can prepare in advance and make the last phase of your move as painless as possible.
The Estimation of the Typical Cost of UK Relocation
It goes without saying that every scenario of a move is unique, and personal circumstances vary, including how long it takes to move. To have a sense of where you stand, it’s useful to have some rough estimates.
Conveyancing Fees
Whether you are buying or selling, having a conveyancing solicitor is essential. During the conveyancing procedure, they will handle a variety of legal tasks, such as the deposit transfer, serving as the point of contact for your mortgage lender, and exchanging documents. Depending on the type of property and other criteria, conveyancing costs might vary, but they can reach thousands.
The average cost of conveyancing fees can vary from £700 – £2000 (as of February 2023).
Mortgage & Deposit Fees
A deposit is typically required in order to obtain a mortgage for a piece of property. In the UK, a minimum of 5% is required, but a little down payment may make it more difficult to qualify for a mortgage. If you put down a deposit equal to 15% or more of the home’s appraised value, your chances of getting accepted may increase.
Additionally, you can use the equity in your first home to help with your next deposit, should you need it, but be aware that an upgrade to a much more expensive property may require more savings to meet the threshold.
Any fees associated with setting up your mortgage must also be paid. These can either be paid in full up front or added to your mortgage.
Stamp Duty
Essentially, stamp duty is a tax imposed on home purchases in the UK. It is normally paid to the government and is a percentage of the home’s purchase price. The rate of stamp duty depends on the value of the property, the type of property, the buyer’s residency status, and the buyer’s history.
In September 2022, it was imposed that in England and Northern Ireland, you will not be required to pay Stamp Duty on the first £250,000 of the purchase price of a home (as of February 2023).
Additionally, you must pay Land Transaction Tax (LTT) on homes that cost more than £225,000 if you reside in Wales, and in Scotland, on homes that cost more than £145,000 (£175,000 if you’re a first-time buyer), Land and Buildings Transaction Tax (LBTT) is paid.
Redirecting Your Mail
Your new house will require you to redirect your mail, which is easily done online after you’ve moved in. If you’re moving with someone who has a different surname, they will need to reroute theirs separately.
You may find some relief from the strain of moving by re-routing your post. You can reroute your mail through Royal Mail for three, six, or twelve months while you make sure that everyone is aware of your address change. This applies even if you are relocating abroad. Here are the current prices as of February 2023.
3 months: £33.99+ (120.99+ overseas)
6 months: £47.99+ (173.99+ overseas)
12 months: £68.99+ (249.99+ overseas)
Home Insurance
As soon as contracts are exchanged, it is advised that you obtain home insurance because you are now legally liable for the structure. There is often a savings to be had when you combine contents and building insurance.
The average cost of home insurance in the UK is between £100 – £200 (as of February 2023).
Estate Agent Fees
If you are selling your house, your estate agent will charge a fee, usually between 1% and 3% of the price of the transaction. Ask if VAT is included in a price before accepting it.
If you are looking to purchase a house, it may be smart to work with a buying agent who can represent your interests and assist you in negotiating the best price. Flat rates or commissions are used in these services, and will also cost around 1-3% of the property purchase price, but can vary depending on the specific services offered and the experience of the agent.
Removals Costs When Moving House in The UK
It can be exhilarating and stressful at the same time to move homes. Removal charges are one of the most neglected expenses that homeowners neglect to budget for. Most people are surprised by the additional cost you must budget for a removals firm to pack and unpack your stuff. Here are the costs associated with moving and some ways you might reduce them.
According to short-distance moving estimates, the typical cost of moving a 3-bedroom house is approximately £555. This should cover all your basic expenses if you packed your own furniture and goods.
How The Cost of Removals Correlates to The Size of Your Home
The size of your property will determine the removal price you receive from any house removals company. If you are moving out of a 5-bed, 2-bathroom house, for instance, you will need more packing supplies, a bigger moving vehicle, and more time from the moving company to move your furniture than if you are moving out of a one-bedroom house or city flat.
As a result, you must include these extra costs when comparing the removal quotes you have obtained from nearby businesses.
Moving in Bournemouth & Dorset
Like anywhere in the UK, the cost of living in Bournemouth and Dorset can vary depending on the size of the property, whether you’re buying or renting, and the location. You may find that the cost of renting a property in Bournemouth is higher than in other areas in Dorset, such as Poole or Christchurch.
Additionally, when moving house in Bournemouth, it’s important to consider factors such as transportation, local amenities, and the condition of the property. It’s also advisable to research the local housing market and work with reputable estate agents to ensure you find a property that meets your needs and budget.
At Thomas Pardy, our service for removals in Bournemouth can make your move as smooth as possible. We offer a range of removal services, including packing, storage, and transportation, to help make your move stress-free. Our experienced team can handle all aspects of your move, from start to finish, and we take pride in providing a high-quality service at an affordable price.
Final Thoughts
We hope you enjoyed our insight into the cost of moving house in the UK in 2023. Overall, the cost of moving house will depend on your personal circumstances and the size of your home.