A recent study by Compare the Market has revealed that nearly 70% of households face unexpected costs and fees when moving home, with the average amount of these hidden fees reaching £5,837.
The most frequently encountered surprise expenses include legal fees, which were higher than expected for 41% of respondents. Additionally, 26% noted the unexpectedly high costs associated with moving, such as hiring a removal van or paying for short-term storage.
More than 20% of households were caught off guard by the high cost of mortgage arrangement fees (23%) and homebuyer surveys (22%).
On average, households paid £1,521 for legal fees, while moving costs typically amounted to £349. The most expensive surprise cost was unplanned building work, which affected 15% of households, setting them back an average of £6,825.
Spring is traditionally the most popular time to move, which means more homebuyers could face these hidden costs during this season. A significant majority, 67%, expressed concern upon discovering these unexpected expenses.
To manage the additional costs, most homeowners relied on personal savings (65%), while nearly 20% received help from friends and family. Additionally, 15% used a credit card and almost 10% took out a personal loan.
Andy Hancock, Chief Growth Officer at Compare the Market, commented, “We all know that buying your own home is one of the most expensive purchases you’re ever going to make. But you might not be clued up on all the additional costs involved in buying a new home, which can be more than £5,000 on top of the house price.
“Credit cards and personal loans are popular ways to cover these hidden costs if you don’t have enough savings. If you decide to take out a credit card or personal loan it is worthwhile shopping around online and comparing deals to find one that suits your needs and circumstances.”