Save £22,000 when moving house

UK residents can save as much as £22,000 when moving house

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Wednesday, 02, Nov 2005 05:27

Moving house is an undeniably expensive experience, but UK residents can save as much as £22,000 by being careful about where the money goes.

That is according to a new report by Your Mortgage magazine, which investigated where movers could make some money back.

The largest savings can be made on the cost of the house itself.

Properties are currently changing hands at 93.4 per cent of their asking price, the largest discount since January. This means buyers with the gumption to ask are, on average, saving £9,920 on the price of an average UK home.

The next biggest single saving is on estate agent's fees. While the advertisement and advice services offered by agents can make selling a house an easier, their fees can be as high as three per cent of the sale value of a property.

While three per cent does not sound a lot, it equates to £4,827 on the value of an average home.

By advertising privately, using websites and dedicated papers, sellers could save themselves more than £3,000, Your Mortgage magazine calculates.

"Some of these cost efficient measures may sound obvious but it is amazing how many people don't capitalise on the savings it is possible to make," said Paula John, Your Mortgage magazine editor.

"Remember that savings are there to be made and with the enormous amount of costs involved in buying and selling property it is worth exploiting every opportunity. My advice would be don't be afraid to negotiate and do your homework when it comes to financial products-don't just select for the first option you see."

Other areas where savings can be found include using online solicitors/conveyancers (£500) and moving your own things (£500). Changing utility providers can also produce savings of as much as £700.

Additionally, those with spare bedrooms can rent them out, with the Inland Revenue allowing homeowners to make £4,250 a year renting a room (equating to £354 a month or £81 a week) tax-free.