The hidden cost of moving home

Moving house is one of life's biggest upheavals - and not just emotionally. Sarah Modlock reveals how it can drain the wallet as well

Couple moving home

After the elation of finding and purchasing a home there comes the packing, unpacking, cleaning and decorating. So it's hardly surprising that we feel not only physically exhausted but also emotionally and financially drained afterwards. Yet British people are compulsive house-hoppers and neither the huge costs nor stress incurred can deter us from our quest to climb the property ladder.

New research from Direct Debit - the company that runs our automatic payment system - reveals we are gluttons for punishment when it comes to property. UK homeowners move house on average six times in their lifetime. The average cost of each move is £2,260 - a national bill of £48bn - but it's the forgotten finances that really hit homeowners hard.

The upheaval of moving house can cause severe financial penalties. 15 per cent of those who move home fail to notify banks and utility companies of their change of address - collectively racking up close to £224 million in late payment fines and interest charges.

Selling one home and buying another can mean double trouble. Research from insurer Norwich Union suggests that a place on the property ladder can seriously damage your relationship as well as your wallet. The insurer's study Moving Apart reveals that nearly 100,000 first-time buyers have experienced problems with their partner caused by the emotional stress of buying a home.

Lack of planning and money worries make for anything but home sweet home - 88 per cent of those questioned admitted to underestimating the cost of moving house. Almost half said they found the buying and moving process bewildering and confusing and a quarter went on average £10,000 over budget.

The more time you take to plan ahead, the less likely you are to hit the limits of your money and sanity.

Consulting an independent mortgage broker is a sensible move for first-time buyers and anyone else with unusual requirements. Your mortgage lender should also be able to provide help with budgeting for your new home. Some companies even offer free advice on avoiding stress when you buy - just don't expect them to do your unpacking, too.