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Hannah Bernard, Head of Mortgages at Barclays

Moving (Costs) on up !

07 August 2019

Barclays Mortgages reveals the real cost of moving
…but there are plenty of additional surprises!

  • Brits spend an average of £9,331* in total home moving costs, when taking into account both associated and known costs
  • Homebuyers in Liverpool pay the least costs when moving house, Londoners fork out 8 times as much with Cambridge second most expensive city
  • 47 per cent of people have been caught out by unexpected costs of moving, while 42 per cent say that moving house caused them worry and anxiety

With summer periodically the most popular time of year to move house, new research reveals the true cost of moving across the country, showing stark differences between cities.

Analysis from Barclays Mortgages shows the average upfront cost1 of moving home in the UK, including estate agent, legal and surveyor fees, land registry, EPC and stamp duty, is £7,641, on top of the purchase price. Meanwhile, the average unexpected associated costs2 can add up to £1,690, meaning homeowners are stumping up £9,331 on average in total home moving costs.

Upfront moving costs

The analysis looked at the average upfront cost of moving by city across the country, and found that costs vary significantly. Liverpool residents expect to pay just £2,787, compared to a whopping £22,417 spent in upfront costs for those looking to purchase a typical property in London.

For homebuyers also selling their own property, estate agent fees can play a major part in costs. For example, those selling a property in Oxford on average pay £5,783 in estate agents fees compared to £1,780 in Glasgow.

Stamp duty can equally cause a financial headache for those looking to move. In London, where the average house price is currently £482,200, homebuyers have to find typically £14,110 in stamp duty. House hunters in Oxford and Cambridge have on average similarly large stamp duty bills to pay too, with £10,365 and £11,130 respectively. But it’s not all bad news. Those looking to buy in Liverpool, where the average house price is £123,000, would not have to pay stamp duty on a house of this value, under the current stamp duty threshold of £125,000.

On top of this, building insurance costs can amount to £107 and a survey – although not a legal requirement but recommended – will set you back a further £550. An energy performance certificate is a legal requirement, which adds an additional £90 on average.

Associated costs of moving

In addition to these largely anticipated costs, many home movers are being caught out with a number of unexpected costs, including childcare, self-storage, decorating and pet-sitting fees. Indeed, nearly one in two (47 per cent) say they have incurred such costs as a result of moving property3.

The most commonly unanticipated costs nationwide include buying new furniture that didn’t fit in the new home (43 per cent), decorators/DIY help (34 per cent) and the need to buy takeaways for the first few weeks after moving in the absence of a fully functioning kitchen (26 per cent). Bristol and Belfast pay the most in unforeseen costs on average, while London the least.

Hannah Bernard, Head of Mortgages at Barclays, said: “Buying a house is a huge financial moment and the lead up to your dream home should be as stress-free as possible. Our findings show that on top of the burden of expected costs, homebuyers are getting caught out by additional costs that aren’t included in the asking price.

“To balance the budget, try to plan ahead and really challenge what home move costs you could cut down, or better yet, if there are any you can cut out. Enlisting friends and family to help out could really save the pounds too. Our Barclays app helps customers plan ahead and see their payments in a calendar view, making it really simple to balance outgoings.”

The cost to wellbeing

Whilst the hidden financial implications are high, moving properties can also have a negative impact on mental health. Of those surveyed, 42 per cent admitted that moving home made them feel worried and anxious, while almost one in six (17 per cent) said that the stress of the move had a negative impact on their mental health.

Two-fifths (40 per cent) of home buyers believed it took them between three to six months to feel settled and in control again following a big move. Nearly half (46 per cent) named solicitor delays as the main factor impacting their mental wellbeing, with financial pressure (45 per cent) coming a close second.

The research also revealed that almost half (47 per cent) of homebuyers admitted to not being prepared for moving financially, underestimating the overall costs involved. This has resulted in 54 per cent admitting to needing to lean on family members for financial support to deal with the unexpected costs of moving – putting additional strain on their mental wellbeing.

Hannah Bernard continues: “Whether it’s storage for belongings, parking and removal vans or even childcare, buying a new house can really take its toll on finances at a time when home movers will be feeling the pinch. We know that financial pressures are a principal contributor to stress and anxiety around a house move. Being prepared for any last minute costs is a first step to make that milestone as smooth as possible.

For further information on Barclays range of mortgages, go to: http://www.barclays.co.uk/mortgages

For more details on the Cost of Moving, go to: https://www.barclays.co.uk/mortgages/guides/real-cost-of-moving/

- ENDS -

Notes to Editors

1 Table One– the known costs of buying a home:

City

Average legal fees (freehold property)

Estate agent fee (if selling)

Land registry

Stamp duty

Total known fees

London

£1,160

£6,847

£300

£14,110

£22,417

Cambridge

£1,160

£6,001

£300

£11,130

£18,591

Oxford

£1,160

£5,784

£300

£10,365

£17,609

Bristol

£1,020

£3,976

£300

£4,000

£9,296

York

£1,020

£3,904

£300

£3,747

£8,971

Norwich

£965

£3,383

£300

£2,265

£6,913

Southampton

£965

£3,240

£300

£2,064

£6,569

Edinburgh

£965

£3,257

£300

£1,688

£6,210

Cardiff

£965

£2,979

£300

£1,043

£5,287

Manchester

£895

£2,418

£200

£906

£4,419

Leeds

£895

£2,370

£200

£838

£4,303

Birmingham

£895

£2,354

£200

£816

£4,265

Sheffield

£840

£1,974

£200

£280

£3,294

Belfast

£895

£1,923

£200

£208

£3,226

Newcastle

£840

£1,820

£200

£64

£2,924

Glasgow

£840

£1,781

£200

£0

£2,821

Liverpool

£840

£1,747

£200

£0

£2,787

UK City Average

£7,641

Sourced from leading estate agents and independent property companies across the UK. A full list of sources is available on request. July 2019.

2 Table Two The associated costs with buying a home:

City

Average hourly Childcare

Average hourly Parking

Average weekly Self-Storage

 

Average ½ day Removal

Average hourly Decorator

Average hourly Pet- Sitter

Average Annual Council Tax

(Band D)

Bristol

£7

£1.70

£28

£203

£20

£12

£1,691

Belfast

£7

£1.50

£26

£133

£14

£10

£1,750

Liverpool

£7

£1.30

£20

£181

£23

£9

£1,650

Oxford

£8

£1.70

£26

£325

£22

£10

£1,469

Newcastle

£6

£1.00

£26

£150

£21

£8

£1,643

Sheffield

£7

£2.00

£14

£125

£20

£12

£1,559

Southampton

£8

£1.10

£11

£134

£20

£12

£1,536

Cardiff

£7

£1.50

£28

£203

£25

£11

£1,390

Leeds

£7

£1.10

£23

£195

£20

£9

£1,393

Cambridge

£7

£2.60

£28

£225

£30

£14

£1,312

York

£7

£1.10

£25

£183

£20

£12

£1,330

Norwich

£6

£1.10

£26

£150

£18

£8

£1,362

Birmingham

£7

£2.20

£26

£200

£20

£9

£1,301

Manchester

£7

£2.30

£26

£120

£23

£8

£1,371

Edinburgh

£7

£3.20

£23

£189

£20

£10

£1,277

Glasgow

£7

£1.60

£23

£142

£20

£9

£1,325

London

£9

£4.50

£23

£240

£29

£14

£1,171

Sourced from leading city providers. Unexpected costs of moving were calculated based on the average cost of the following in UK cities: 1 hours of childcare, 1 hours of parking, self-storage for one week, half a day’s removal service, 1 hour of decorators’ time, 1 hours of pet sitting and council tax. July 2019

3 Research conducted by One Poll in July 2019 amongst 2,000 homeowners who had bought their home within the last five years.

The Barclays app helps customers to plan ahead and see their expected payments by going into the app an selecting Pay & Transfer -> Manage Your Payments within which you will find number of tools including Calendar.

About Barclays

Barclays is a transatlantic consumer and wholesale bank offering products and services across personal, corporate and investment banking, credit cards and wealth management, with a strong presence in our two home markets of the UK and the US.

With over 325 years of history and expertise in banking, Barclays operates in over 40 countries and employs 82,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.

For further information about Barclays, please visit our website www.barclays.com