Buying a new home is probably the biggest investment any of us will ever make. And it’s unlikely to be a one-off; as our families grow and circumstances change, we’ll need more space as the years pass.
Moving home isn’t cheap of course, and although the Government and housebuilding industry has initiatives designed to get first-time buyers onto the housing ladder, if you’re looking to make the next step up, the financial advantages aren’t quite as clear.
Some people take one look at the uncertainties in the current housing market and, perhaps understandably, decide to spend the money on renovating their old house instead. But is that a good financial move? Let’s look at the evidence.
How much does it cost to move house?
According to the Government’s UK House Price Index, the average cost of a property in November 2018 was £230,630.
The cost of buying a house, including mortgage valuation, property surveyors, conveyancing fees and Stamp Duty, is, on average, £3,317.00. To sell your current house will typically cost £6,893.00, including conveyancing fees, EPC, estate agent’s fees, and removals costs.
So, in total, selling your old home and buying a new one costs an average of £10,210.00.1
Ouch! I’ll stay put and renovate.
Surely doing up the old place won’t cost that much? Think again!
If you want a kitchen and bathroom that’s as good as a new build, it’s going to cost. A new kitchen can set you back around £8,000; more if you add in the cost of new appliances. A shiny new bathroom could cost you between £2,500 and £6,000.2
Converting the loft to make an additional bedroom is another popular choice. Here, you’re looking at around £15,000 for the most basic option, rising to over £40,000 if you want dormer windows and an en-suite.3
If you decide on hiring a professional for a new coat of paint throughout, you can expect to pay just over £1,000 for a 3-bedroom home.4
How running costs measure up
The cost of keeping your house going – electricity and other utilities, plus the cost of repairs and updating, all need to be considered in the stay-or-move equation.
New build houses are generally much cheaper to run. They are usually better insulated, with double glazed windows, and have central heating systems with modern boilers that are designed to run more economically. Data from the Home Builders Federation shows that owners of new builds save, on average, £629 per year on energy bills.5
Built for modern living
Costs aren’t everything, of course. With a new-build four-bedroom home, for example, you’ll generally find lots of features that are missing or non-standard in an older home – for example, a garage and additional allocated parking (handy when many families have at least two cars to park), a downstairs cloakroom and an en-suite bathroom in addition to the main bathroom, and lots of power points just where you need them – plus safety features such as smoke alarms, window locks and intruder alarm (or wiring for one).
So, if you’re sold on the idea of a brand-new home, you would be well advised to consider Jelson because, unlike many other new-build homes , Jelson homes are ready to move into when you take delivery of the keys. Carpets and tiled floors are already laid, and ovens and hobs already fitted. There’s a lawn to your back garden and fencing, too, so everything is ready for you to start enjoying your new home without delay.