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Don’t underestimate your moving costs

Don’t underestimate your moving costs

Category: Money

Updated: 03/09/2015
First Published: 03/09/2015

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Moving home can be an expensive business, but unfortunately, many people underestimate how pricey it can actually be – and that could mean you end up paying far more than you bargained for.

Costly times

Research from Ocean Finance shows that, of respondents who had moved home in the last two years, a third underestimated the cost of moving and spent significantly more than they originally budgeted. On average, home-movers spent an extra £630 more than they'd planned to, but 23% of those who underestimated costs spent more than £1,000 over their planned budget.

The key reason for overspending was miscalculating the cost of a removal company, something that over a quarter of respondents fell prey to. A further 24% had to pay for a skip, a cleaner or a post redirection service, while 20% had to pay for storage while they organised their new home.

A further 19% admitted that they were so exhausted from moving that they opted for takeaway dinners, another added expense, while 14% had to call in tradesmen to get their home shipshape. All of these costs can add up, and as you can see, there's far more to think about than estate agent fees!

"When you are thinking about moving house, it's very important to consider the real cost of moving," said Gareth Shilton, a spokesman for Ocean Finance. "The best way to cope with the extra cost of moving house is to plan ahead so you know exactly what you'll have to pay for. Make a detailed list of your expenses and save some extra cash so you can enjoy your first-night takeaway guilt-free."

Be prepared!

Don't want to spend far more than you'd planned to? Then be prepared! Increasing your budget now (and saving accordingly) could pay dividends when the time comes, because there's nothing worse than needing to find money out of thin air. As Gareth said, you'll want to make a note of everything you could possibly need to pay for when the time comes, and ideally do your research or get a few quotes in advance so you know what the cost will be.

Then, get saving! Hopefully you'll already be in the savings habit, but if not it's time to start. If your moving date is a long way off you may want to consider a regular savings account, or if not, an easy access version would be ideal for this purpose. You can add money to it at will and be able to withdraw it whenever those extra costs crop up, so check out our savings best buys to build up your pot and be as prepared as possible.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.