When budgeting for a move, it’s easy to focus on the main costs like a deposit, monthly rent, or mortgage payments. However, there are often hidden expenses that can take you by surprise. Here’s a guide to help you plan for these unexpected costs, whether you’re buying, selling, or renting a home.
1. Survey and Inspection Fees
If you’re buying a home, a survey is essential to identify any structural issues before you commit. Depending on the type of survey, costs can range from a few hundred to over a thousand pounds.
- Condition Report: Basic survey, ideal for new or well-maintained homes.
- HomeBuyer’s Report: A more detailed inspection, suitable for standard properties.
- Building Survey: The most thorough option, recommended for older or unique properties.
While this adds to your upfront expenses, a survey can help you avoid expensive repairs later on.
2. Legal and Conveyancing Fees
Whether buying or selling, you’ll need a solicitor or licensed conveyancer to handle the legal side of the transaction. Fees for this service can range between £500 and £1,500, depending on the property’s complexity.
If you’re selling, your solicitor will also prepare contracts and liaise with the buyer’s solicitor. Make sure to budget for this so you’re prepared when the bill arrives.
3. Stamp Duty
Stamp Duty Land Tax (SDLT) is a significant cost for many buyers in the UK. The amount you pay depends on the property’s value and your status as a buyer. For example, first-time buyers often receive a discount or exemption, while additional property buyers pay a higher rate.
Knowing your SDLT liability upfront is essential to avoid budget shocks. There are online calculators available to help you estimate what you might owe.
4. Removal and Moving Costs
Moving costs can vary depending on how much you have to transport and how far you’re going. Professional movers often charge between £300 and £1,200, depending on the distance and volume of belongings. Renting a van and moving yourself can be cheaper but requires more time and effort.
Be sure to get multiple quotes and book your movers early to avoid last-minute fees.
5. Maintenance and Repairs
When you buy a home, maintenance costs become your responsibility. Regular upkeep, like boiler servicing, roof repairs, and plumbing checks, can add up over time. For older properties, the costs may be higher due to wear and tear.
Creating a small maintenance fund can help you stay prepared for any unexpected repairs, reducing the financial stress of sudden issues.
6. Rental Deposits and Fees
Renting comes with its own set of hidden costs. You’ll need to pay a security deposit, which is usually equal to one month’s rent. While recent laws limit additional fees, some costs may still apply, like fees for background checks or holding deposits.
If you’re moving into a furnished rental, double-check the inventory to ensure everything is accounted for. This can prevent deductions from your deposit when you move out.
7. Utility Set-Up and Council Tax
Moving into a new property often means setting up new utility accounts for electricity, gas, water, and internet. Some providers may charge connection fees, particularly if new meters are required. Additionally, council tax is a mandatory cost for most UK residents. The amount varies depending on the council and the property’s valuation band, so check this in advance to avoid surprises.
8. Home Insurance and Contents Insurance
If you’re buying, home insurance is typically required by your mortgage provider to protect the structure of the property. Contents insurance, while optional, can be beneficial for both renters and owners as it covers personal belongings.
Comparing policies from different providers is a good way to find a reasonable rate, and some providers offer discounts if you bundle home and contents insurance together.
9. Redecoration and Furnishing Costs
Moving into a new property often means making it your own. Whether it’s repainting walls, replacing carpets, or buying furniture, these costs can add up quickly. Consider prioritising essential purchases first, and then gradually add non-essential items as your budget allows.
If you’re renting, check with your landlord before making any changes. Some landlords allow redecorating, but it’s always best to get permission in writing to avoid issues later.
10. Selling Fees and Estate Agent Commission
If you’re selling a property, estate agent fees are a significant cost to factor in. Estate agents usually charge between 1-3% of the sale price as commission, though fees can vary depending on the service level and agency type.
While some sellers opt for online estate agents to reduce costs, remember to compare service levels to ensure you’re getting good value for money.
Final Thoughts
Understanding the hidden costs of buying, selling, or renting can help you budget more accurately and avoid financial stress. By planning for these expenses ahead of time, you’ll be better prepared and able to focus on enjoying your new home.
