Although moving places might seem as easy as calling in the man and van people and kicking back while the removal is in progress, there is a tat more to moving house in the UK than meets the eye.
Generally, the cost of moving house in the UK is the main issue for people. Some experts who have kept an eye on the industry for some time have actually stated that the cost of moving house in the UK is quite steep, and actually depresses the industry. This goes to show that some number crunching and good financial planning are inseparable part of any well organised property removal.
Say, a household was moving from one house to another by selling their current property in order to buy their next one. This is a classic scenario which should give a good indication of some of the main costs and considerations involved.
- Man and van removal costs – it is important to factor in the cost of a comprehensive removal service into the overall equation. Usually, the cost of the man and van service will depend on the volume, number or weight of furniture/possessions to be moved, as well as the removal distance and the timeframe of the project. The size of the property will also play a role in forming the end price of the man and van service.
Administrative costs concerning the removal:
- Stamp Duty Tax – this is payable by the buyer of the property as a percentage of the purchase price. The percentage or amount payable by buyer varies depending on the price of the property. Sometimes a single pound extra in asking price will raise stamp duty tax notably so buyers need to do the math before committing to a purchase. This so called threshold stamp duty system causes sharp spikes in property costs and in result it is unflavoured by many people and businesses. Organisations engaged in stamp duty reforms, propose a progressive tax, based on incremental tax bands.
Fact: Average house prices in the UK are projected to exceed 250K pounds in 2014, this means that the average stamp duty tax paid by buyers would gravitate around 7500 pounds per property.
- Real Estate Agent Fees – not many people can manage and see through the purchase of a property on their own, this is why most of the time estate agents are engaged for the task. For the last five years, the average real estate agent fee paid by customers in the UK ranges from 1.8 to 2.5 percent of each property deal. Keep in mind that agent fees vary greatly.
- Survey Costs – before committing to a purchase or offer, buyers must do their homework i.e. do some background checks. The four main types of property surveys in the UK are valuation surveys, condition reports, homebuyer reports, full structural surveys. These can attracts costs ranging from 100 pounds anywhere up to 1000 pounds. High end properties come with higher survey costs.
- Legal (conveyancing) fees must also be considered as they range from 250 pounds to 1500 pounds depending on the specs of the purchase.
- Mortgage arrangement fees (if applicable) average about fifteen hundred pounds.