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A Guide to Budgeting for your New Home

Thu 20 Feb 2014

Moving home can be one of the most exciting (and stressful) times in a person’s life and the costs involved are often drastically underestimated. In this guide we look at the main factors to bear in mind when budgeting for your new home. 

Moving Costs

On moving day there are few people who can transport all their property with their usual vehicle, and given that rental vans can run into the hundreds, planning ahead and getting cast iron quotes is vital. You should also remember to overestimate the amount of time allotted to moving your items from A to B, as very often it can take far longer than most people imagine.

Property Maintenance

Whilst essential maintenance will be the responsibility of the landlord, you need to factor in a contingency budget for odd jobs that you may have overlooked whilst originally viewing the property.

Décor Changes and Furniture

If you’re renting and your landlord allows for you to make changes to the décor you need to factor in the materials required after your move. Another common issue with moving homes is that people very often think that their furniture will fit perfectly to their new surroundings; in fact, it’s more commonly the case that a person’s new property looks sparse, and the average person’s wallet can be looking pretty sorry for itself after a move.

Buying a Property

If your house move involves the purchase of a house then there are lots of fees that you need to consider, here’s a brief run down:

  •  Surveys: Surveys are often a necessity and if you’re purchasing an older home, house buying reports will be too. These vary in price depending on the size of the home; however it’s worth factoring in a few hundred pounds at the very least. 
  • Solicitor’s fees: Whilst you will be informed of the solicitor’s fees that are set at the beginning of the process (such as search fees) you will be presented with an invoice at the end of the process when you’re just about to exchange and collect your keys. It’s vital you plan for this bill, as not having the available funds will most likely mean that you can’t collect the keys until it’s paid.

After the Move

Following your move you need to bear in mind that wherever you’ve moved to, the expenses from month to month will be different to your previous property. Here are the key outgoings you need to be thinking about.

Council tax

Council tax changes can be a bit of a shock for someone moving from a flat to a house. To plan ahead for your expenses you should check out the local authority’s going rates, and find out the band of your property (which should be searchable based on the property’s postcode).

Energy bills

Whilst all properties now have an energy efficiency rating as a legal requirement, it in no way serves as a set-in-stone guide to how much your energy bills will be. This is particularly true of properties that have an old heating system. If possible, you may want to ask about the previous owner or tenant’s bills.

Water rates

Water rates are generally overlooked as they are a lot less than other bills, however, you need to ensure that your new property is on fixed pricing, rather than a meter, as moving from one to the other can mean that your payments go up, rather than down.

These are just a few of the factors that need to be consider when moving into a new home – there may be more, but these the main important ones that people tend to overlook.