Increased demand

We’re used to frantic spending sprees in January as people try to bag a bargain at the shops, but it’s not just reserved for retail. 100,000 extra house sales are forecast in early 2021 as people evaluate their lives and the impact of the pandemic.

This surge in property sales also comes at a time when solicitors and relationship experts, like Relate, see huge spikes in enquiries and web traffic due to people separating and divorcing. Historically known as Divorce Day, this flurry of January activity coupled with the Stamp Duty holiday is expected to contribute to a spike in sales. 

The increase in demand is also placing pressure on conveyancers and mortgage providers, with many experiencing delays in the normal timescales for selling and completing a house purchase (usually around 90 days) or arranging a mortgage (usually a couple of weeks).

“To get a mortgage offer in normal times, you are usually looking at a couple of weeks from the application,” says David Hollingworth of brokers L&C. “Now, you could be expecting it to take at least a month, or possibly longer.”

The costs of moving house

Factoring in delays and demand can help you gain a clear picture for planning. It also pays to take a look at the costs of moving house, especially in challenging times for the economy and the rollercoaster of emotions that come with moving – especially if there has been a relationship breakdown.

The Home Owners Alliance reports that the average conveyancing costs in the UK are between £850-£1,500. If you’re considering moving then factoring in the costs of selling and buying are essential when knowing your budget. It’s also worth taking a look at your mortgage options – will you be using a mortgage broker? Pay attention to any fees that might be payable and how that will affect your budget.

Removal companies can help with packing and unpacking, dismantling and re-assembly of furniture which can be helpful to remember if tensions are high in your household. Compare My Move estimates that the average cost of a removal company is just over £1,000 – if you’re separating then perhaps agree to split as many of the costs as you can.

Richard Donnell, director of research & insight at Zoopla, said: “It has been a rollercoaster year for the housing market which is ending on a strong note, with demand and sales agreed still more than 30% higher than this time last year.”

With so much demand and ever-increasing timescales for moving home, getting as much information as you can, will help limit any surprises, unexpected costs or emotional burden.

To keep you updated with the most appropriate information, here are some useful sites:

https://www.relate.org.uk/relationship-help/help-separation-and-divorce/...

https://www.gov.uk/guidance/government-advice-on-home-moving-during-the-...

https://www.which.co.uk/money/mortgages-and-property/home-movers/moving-...