Although the stamp duty holiday has slashed more than £4,000 from the average cost of moving house, the price of other fees such as removals fees, home buyers survey, conveyancing and estate agent fees are rising. In this blog, we will show you how much you should set aside if you are planning to move house.
The prices of houses in the UK have continued on an upward trend since 2013.
Due to the impact of the coronavirus pandemic, in July 2020 the Chancellor made modifications to the Stamp Duty Land Tax to lower the tax that was paid upon purchasing a home up until 31st March 2021. To help to keep the housing market buoyant. This has so far had a good impact on the market however, it is hard to say how this will change when the stamp duty goes back up come 1st April 2021.
As of November 2020, here are the headline statistics that Her Majesty's Land Registry has gathered:
£249,633 - Average price of a property in the UK
7.6% - Annual price change for a property in the UK
1.2% - Monthly price change for a property in the UK
When purchasing or selling your home, you will need a licensed Conveyancer or Solicitor to execute all the required legal work. The legal fees range from £800 to £2,000 plus 20% VAT depending upon the cost of your home.
If you are obtaining a mortgage you will also be required to undertake a Local Search which will cost you anywhere from £200 to £300 depending on the Local Council. This is to verify whether there are any problems or local plans that will affect your house purchase.
There are also charges from the Land Registry to register your ownership over the property, this is all dependant upon the purchase price of the property, if you are purchasing a house between £200,000 to £500,000 the current registration fee for this will be £135.
And of course there is the Stamp Duty fee, which is normally the highest cost when purchasing. You have only until 31 March 2021 to take advantage of the £500,000 tax exemption. If you are looking to purchase after the 1st April 2021 you can use the Governments Stamp Duty Calculator to work out how much stamp duty you will be required to pay.
If you are having a mortgage to facilitate your purchase your mortgage company will undertake a mortgage survey of the property to check that it is in good working order for their loan.
However the onus is on the buyer to arrange for a full property survey to be carried out if they wish so. The expense you will pay for a Home Buyers Survey will depend on the size and value of your property. The Home Buyers Survey is a visual examination that is carried out by a surveyor. The surveyor will inspect all visible areas of your home and write a report on its overall condition and report any defects if found. The survey does not include lifting the floorboards, carpets or moving furniture. For a more comprehensive visual examination, a Building Survey can be carried out.
Only chartered surveyors from The Royal Institution of Chartered Surveyors are allowed to conduct the Home Buyers Survey. The Home Buyers Survey is recommended for typical and modern homes in reasonable condition as it visually examines obvious defects or problems within the property. For outdated or dilapidated properties, the Building Survey is advisable because it will carry out a more thorough visual examination.
When booking the Home Buyers Survey, you have the freedom to choose the Home Buyers Survey service by itself or Home Buyers Survey with valuation. The former includes a detailed Condition Report, advice on what to do with urgent defects, how the defects will affect the value of the property and advice for repair and maintenance. The latter will include all of the features mentioned above, including a market valuation and costs for insurance rebuild.
The visual examination will cover all important indoor features such as bathrooms, walls, roof and ceilings. Permanent outdoor features such as doors, windows, walls, gutters, pipes and roofing are also inspected. The visual inspection will also cover water, gas, oil, electric, drainage and heating services: the surveyor will provide an energy efficiency rating after the inspection.
The visual examination will also bring to light any serious structural defects with the property such as subsidence. The surveyor will also inspect your drainage, insulation, damp-proofing and perform a damp test on your walls to make sure damp is not existent in your property. The surveyor will also take a look at the condition of the timbers within your property and inspect them for the presence of rotting or woodworm.
The Home Buyers Survey will also include details of all the major defects in your property and how they will affect its value, as well as the estimated cost to fix these problems. The surveyor may also offer maintenance and repair advice so you can carry out the repair and maintenance work as soon as possible.
Aside from paying the mortgage company, solicitors, new insurance policies and estate agent fees if selling, you need to prepare for the cost of moving house.
If you have too many items that will not fit in your new home, you might consider putting them in storage. The cost will depend on the size of the storage facility and the length of time you will be needing it. Feel free to shop around and compare storage solutions prices in your area.
Other fees you need to consider are the cleaning fees, mail redirection fees and budget for placing your pets in kennels or paying for childcare on the day of your move.
When hiring a removals company to assist you with moving house, the overall cost will be affected by a lot of factors: this will include the distance of your move, the number of items you have, the inclusion or exclusion of full insurance and the time of year it is scheduled. There may be higher charge for services rendered at the end of the month or weekends.
The average cost of removals in the UK is hard to determine as it really does depend on what services you are looking to have, are you looking for the company to purely load your packed boxes and unload at your new destination or are you looking for a company that will also help you to pack all of your items and disassemble and reassemble them in you new home? For an idea of how much it will cost for your move , you can grab a quick quote from Cotswold Carriers.
If you have any questions about UK removals, European removals, storage and haulage, the moving experts of Cotswold Carriers are always ready to answer you!