Budgeting for a house move: how to plan for hidden costs

Simon Edward • 21 October 2024

Getting ready to move house? There are hidden costs to bear in mind. Find out more in our handy guide.

Moving house can be exciting – but no one ever said it would be easy. Aside from presenting logistical challenges, it's expensive.

Unfortunately, the expenses go beyond the price tag of the property and the deposit due. Recent research from Compare the Market says that nearly 70% of UK households have been stung by hidden costs when moving home. On average, extra costs add up to £5,837.

This means one thing: you need to budget for these fees long before you move house. The alternatives are to overspend or delay the move. Either way, it's a recipe for stress.

That's why we've put together this guide to hidden costs. We hope it helps make your house move that little bit less stressful.

But first, let's run through the upfront costs that everyone has to pay.

Stamp duty

Stamp duty is the tax payable on land and property transactions. The amount you pay will depend on the value of the property and whether you're a first-time buyer.

Full details are available on the government's website.

Conveyancing

When you move house, a conveyancer or solicitor is needed to handle pretty much every stage of the transaction.

You will need a professional to transfer the property title deeds, finalise the mortgage and arrange property searches. Additional costs may be incurred if you're a first-time buyer or moving into a shared ownership or leasehold property.

Fees include service fees, money transfer fees and Land Registry searches. The precise amount will depend on the conveyancer in question and any specific requirements you have. In any case, you should put aside a minimum of £800.

If you're selling, as well as buying, you may be asked to pay a property fraud fee. This is when your solicitor checks the credentials of your buyer's solicitor.

Broker fees

You don't need a mortgage broker – but if you do have one, you'll need to cover their fees.

Home surveys

How do you know if a house has structural issues or defects that will cost you down the line? Sadly, this information isn't always communicated in the property listing. This is why you should always have home surveys carried out by a professional conveyancer.

There are three levels of home surveys, depending on the age and value of the property. Make sure you shop around to get the best deal.

Valuation fee

A lender may charge a valuation fee to ensure the property's value matches the amount you're asking for. This is to reassure the mortgage broker that you're a safe pair of hands to lend to.

A valuation fee is not a home survey. It's cheaper and less detailed. Some lenders include free valuations in their mortgage products, but you should always check before committing to a lender.

Estate agents

You don't need to go through an estate agent. But if you do, they'll take a percentage of the sale price. Make sure you know what this is before working with them.

Removals

Even the most minimalistic homeowner needs to get their possessions from A to B. If you go for a removal company, you'll need to factor in their fees.

This will depend on how much you're taking with you, the distance you're travelling, and whether you're hiring them for help with packing and unpacking, as well as transportation.

6 hidden costs of moving house

1. EPC (energy performance certificate)

An EPC rates the energy performance of your home. It's a legal requirement. Once you get it, it's valid for 10 years. It will cost you somewhere between £60 and £120.

2. Insurance

When moving home, it's wise to get home or contents insurance to protect you against fire, theft and other damage. You'll need to make sure it covers the cost of rebuilding the property in case of disaster.

Insurance fees can vary dramatically, so use comparison sites to get the best deal for you.

3. Storage

If there's a gap between moving out of your old home and into your new one, you may need to pay for storage services. The costs of these will depend on the amount of storage you need and how long you're renting it for.

4. Mail redirect

Unless you're on very good terms with the people moving into your old property, you should arrange to have your mail redirected. This can be arranged ahead of the move via the Royal Mail.

5. Mortgage fees

How much is a mortgage? Sadly, the answer isn't always obvious. Administrative fees can quickly bloat the apparent amount.

The big one to budget for is the arrangement fee. This is an administrative fee for setting up the mortgage. Some arrangement fees can be added to the mortgage with interest. Others can be paid upfront. Either way, it's something you need to keep in mind and budget for ahead of time.

6. Moving-day costs

If statistics are anything to go by, your moving day is likely to be a bit stressful.

First of all, you're probably not going to be in the mood for cooking, so a takeaway will be in order. Then there's the possibility of items getting lost or broken in transit and needing to be replaced.

If you've managed to move house, these costs won't push your budget to breaking point – but they are worth anticipating.

Finally, you may need to arrange pet care for the day of your move.

Moving to a leasehold property

Moving to a leasehold property is more legally complex than moving to a freehold. Because of this, you'll need to factor in ground rent, service charges and additional conveyancing fees.

Are you moving house in the North East? Are you looking to rent a van near you? At MVH Rental, we've built a reputation for offering high-quality vehicles at stonkingly good prices. And you can expect friendly, laid-back service to boot. To get started, simply get in touch.

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