One of the biggest questions for 2023 will be ‘should I move home?’. When it comes to the UK housing market, it’s important to note that experts have warned that rising mortgage rates are continuing to threaten a house price crash. This is because borrowing costs may be too high for many buyers.
In November 2022 the average UK property price fell by 2.3%, this was the largest drop since October 2008, according to Halifax.
That said, there may still be a benefit to those who are looking to move home, despite some of the current uncertainty.
Should I be Moving Home in 2023?
Deciding whether or not to move home isn’t straightforward so, first let’s look at if it is the right decision for you.
Falling House Prices, It’s Not All Bad News
House prices in the UK have been forecast to drop by 8% in 2023 according to Forbes. While this figure may seem daunting to those looking to sell their home, it is important to remember that they are falling from an all-time high point. Due to the current cost of an average UK home, even if they were to drop by 10%, they might only be returning to where they were between 12 – 18 months ago.
Set Realistic Expectations
When selling your home it’s important to set realistic expectations, particularly when it comes to the asking price. Rightmove released a house price index in December 2022, stating that house asking prices had dropped by 2.1% that month. Whilst this is a bigger dip than usual at that time of year, they are still higher than in December 2021.
In November 2022, falling demand for houses resulted in 72% of properties selling for below the original asking price.
Upsizing Or Downsizing Your Home
For those of you who are looking to take the next step on the property ladder, there are additional costs to consider. Not only is the cost of moving up from £12,000 to an estimated £14,000, but there’s also stamp duty, estate agent fees, and conveyancing fees to think about.
However, for those who are planning to downsize, moving home in 2023 is unlikely to be largely affected by the housing market changes for this year.
First Time Buyers
As a first-time buyer, you are likely in the most favourable position with falling house prices. That said, it will depend on your deposit and the amount you intend to borrow as savings you make on the overall cost of your new home may be cancelled out by the high-interest rate on your mortgage payments.
Pros for First-Time Buyers
- Owning a home means you’re not at risk of your rent being hiked up
- If staying in your home for more than 3 years, then you can ride out a fall in house prices
- If a seller wants a quick sale, you could benefit as you have no chain
Cons for First-Time Buyers
- Increasing interest rates
- Small deposits could result in negative equity if house prices fall
Moving House Checklist
For moving home in 2023, here is our top 5 tips:
Before you begin packing, a crucial step is to declutter to ensure you’re not taking any unnecessary or unwanted items with you to your new home.
2. Removal Company
Do thorough research on which removal company to use, including checking reviews and testimonials. Get quotes from at least three different companies to compare. Scroll down for a helpful removal costs calculator.
3. Royal Mail Re-Direct
Royal Mail redirection takes five working days to set up. Royal Mail advises setting this up at least 3 weeks prior to your moving date, however, you may prefer to wait until you complete and exchange contracts.
This ensures you don’t miss any important correspondence like bank statements, bills, and personal documents.
4. Separate Essentials
When you are packing, make sure to separate your essentials into one central box. These items include things like toilet rolls, bedding, tea towel, kettle, mugs, phone chargers, and any other item you deem essential for the first night. This is because you’re unlikely to unpack everything, especially if you move late in the day. This tip makes it easy to find everything you need.
5. Take Meter Readings
Don’t leave it until the last minute, moving home is tiring and it’s easy to forget the little things like checking your meter readings. Even if you just take a photo on your phone when you first move in, and then set a reminder to contact your energy companies.
Average Cost of Moving House
In 2022 the average cost of moving house in the UK was estimated between £11,000 – £12,000. So, how do these costs stack up?
Stamp duty is often one of the largest costs when it comes to moving home, here you can find out exactly how much you will pay using the calculator.
Currently, you won’t pay stamp duty up to £250,000 on a main residence property.
Removal costs when moving home vary on the size of the home you are moving from and also the distance you are moving to. Typically, for a 3-bedroom home, you are looking at an average of £900. For a more accurate calculation, you can try this house removals cost calculator.
Conveyancing and Surveys
Any time you buy a house you will need help from a conveyancer to ensure all the legal bits are taken care of, as well as the surveys. Typically, this can cost around £1,700.
This cost covers things like an independent valuation of the home you are purchasing and a survey of the house to help identify any potential (and costly) issues that may need repairing. Having these issues highlighted may help lower the asking price of the property.
Estate Agent Fees
Estate agent fees are likely to apply when you sell your home, this is usually from 1-3% of the sale plus VAT.
If you’re thinking of moving home in 2023, you can chat with a member of our team for advice, or you can request a valuation. There’s even a handy instant online valuation tool to give you a starting point.