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Even when adjusted for the ever-rising rate of inflation, new data has found that the cost of moving is the highest it's been since 2010, standing at a whopping £7,356. This means that those who've managed to gather a deposit may need to keep saving a bit longer.
The data, collected by reallymoving.com, reveals that 44% of the total cost of moving is made up of estate agent fees, at an average of £3,254. Indeed, the average rate that an estate agent charges may be at a record low, with an average of just 1.2% of the house price, but considering house prices have increased considerably over the years, fees remain high in absolute terms.
After this, the second largest cost comes from stamp duty, which contributes 27% to the total cost. This is despite the Government's decision to abolish stamp duty
for first-time buyers, with the research suggesting that this will only affect a small portion of the market.
The third largest expense is removal costs, but these can vary significantly depending on how much needs to be moved and where it all needs to be moved to. The national average hasn't changed that much over the last decade either, standing at £380 currently, so this may not be too big a worry.
Other, smaller costs include conveyancing and surveys. Rob Houghton, CEO of reallymoving.com, warned: "Increases in fees for services and in particular for stamp duty have seen the total cost of moving rise to the point where a single move costs nearly a third of the median annual salary."
Now, these figures will naturally depend on where you are in the country, so you may not need to save an extra £7,000+ to move. However, there will always be some costs involved in buying a house aside from the deposit. So, remember that going for the cheapest option may not work out as the best value for money in the long run, as the cheapest movers may damage your possessions, and the cheapest estate agents may delay your move.
If you're one year away from being able to afford a first home or move, you may want to put the maximum monthly amount in a regular savings account, which could see you save up as much as £6,000 and get you some of the highest interest rates available at the moment.
If you can't wait a whole year, and you're considering going into debt to afford your move, be very careful. You could try to find a 0% purchase credit card that will give you enough time to pay off the balance before interest starts adding up. Alternatively, a small unsecured loan may be a better choice for you. Whatever you decide, make sure your credit score is up to scratch and remember that debt can impact your mortgage eligibility.
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