The government is looking at all options to calm the housing market as prices rise out of control. The ‘housing bubble’ is a result of several factors, not least the Help To Buy Scheme. One of the biggest home builders in the country, Taylor Wimpey, have recently announced a record high in the number of homes built thanks to the demand created by that system.
Are you aware of the true cost of moving home in today’s financial climate? We are going to investigate some of the costs you may not have considered.
Solicitor’s Fees
People who are buying new houses today, whether it is a cash sale or through a mortgage, can expect to pay up to one thousand pounds in solicitors fees. It doesn’t end there either; the land registration fee is relative to the value of the home, and it could cost up to five hundred pounds. Add on a couple of hundred for search fees and about another six hundred if you are selling a house, and you can see charges mount up fast.
Stamp Duty
That most hated of taxes hits the wealthy hard. Properties fall into bands on which a percentage tax rate applies. Below a value of one hundred and twenty-five thousand pounds, for example, the tax is set at zero. Over two million pounds and you can expect to pay a whopping seven percent. I’m sure we all appreciate the significance of such a tax when the value is high.
Removals
The cost of removals will depend upon the amount of personal belongings and the new location. Overs of Camberley and many other reputable companies will come to you and quote a price for packing and moving your stuff. These services take much of the stress out of moving.
Mortgage And Surveyor
The mortgage lender will apply a charge for their service. The arrangement fee can run into several hundred pounds and exit charges, if you have an existing mortgage, can cost the same.
Anyone buying a home would be a fool to part with their money before completing a survey on it. Banks insist on one before they lend money, but private buyers should always commission their own. A fullstructural survey will cost in the region of five or six hundred pounds. Never trust a survey report you have not ordered yourself.
In our investigations, we have demonstrated that the extra costs in moving house mount up. We await the news from Downing Street about which measures the chancellor will impose to curb excessive growth. The most likely will be interest rate rises and new qualification criteria for mortgages. Any steps that slow the market will ultimately make it more difficult for people to buy a home of their own. The good news is that the market will continue to shrink until those in power have no option, but to stimulate it again. It is an endless cycle that we observe time and time again. The more things change; the more they stay the same.
