British home-movers pay more than £257 million (1) a year in fines for missed payments and interest charges overlooked during the upheaval that takes place when moving home.
New research from Bacs, the company behind the Direct Debit service in the UK, reveals that almost one in five (17%) home-movers forget to inform their utility companies and banks of their change in address, triggering penalties that add to the financial burden of house-moving.
Michael Chambers, Managing Director Bacs, said “Moving home is already an expensive and stressful time, yet we are wasting millions more by letting household bills fall behind when changing address. If consumers used Direct Debit to pay their bills they could rest assured that no payments would be missed – just one less hassle to worry about when changing address.”
During the whole process of moving, one in six (16%) Britons have received a final reminder from a utility company with one in 10 (10%) moving in to find that their services have actually been disconnected.
Stress could be to blame for Britons forgetting finances when climbing the property ladder as one in three (33%) claim moving home is one of the most stressful experiences of their lives with an average cost of moving equaling £2,203 (2) per household.
Yet despite the extra work and anxiety attached to moving, people expect to move six (3) times in their lifetime – with one in seven (14%) choosing a new address even more frequently.
The reasons for this are varied, but more than 350,000 (4) families have gone to the trouble of relocating solely to be in the right catchment area for a certain school, while the main reason for over 87,000 to move has been to be nearer an NHS dentist or other NHS services.
The survey found upgrading properties (34%), moving near jobs (12%) and downsizing property (7%) are the most common reasons to move home.
For more information about Bacs and our services visit Bacs key facts.
Contact Bacs press office.
Notes
(1) From the survey, it was discovered 95% of the nation will move home in their lifetime. (95% per cent of all households in GB (24,365,000) = 24,365,000 x 95% = 23,146,750). (Number of GB households sourced from Office of National Statistics website). Further survey findings from the research revealed that, 13% of the nation’s home movers admit to missing a payment deadline and subsequently being charged as a result of moving home. (13% of 23,146,750 = 3,009,077). Finally, the survey concluded that the average amount incurred in charges, fines or extra interest per person was £85.42. (3,009,077 x £85.42 = £257,035,357)
(2) From the survey it was discovered that the average Brit spends £2,203 when moving home
(3) Respondents were asked to estimate the total number of times they expected to move home in their lifetime. All responses were calculated to find a mean average of six
(4) From the survey it was discovered that 36% of GB have moved in the last two years or are currently looking to or thinking about moving home. 36% of GB households = 8,771,400. Further findings from the research revealed that four per cent of those who have moved in the last two years or are now looking to or thinking about moving home agreed that moving into a catchment area of a certain school was their main reason to move residence. 4% of 8,771,400 = 350,856
(5) From the survey it was discovered that 36% of GB households have moved in the last two years and/ or were currently looking to or thinking about moving home. 36% of GB households = 8,771,400. Further findings from the research revealed that 1% of those who have moved in the last two years and/or are currently looking to or thinking about moving home cited moving nearer to a NHS dentist or other NHS services with shorter waiting lists was their main reason to move house. One per cent of 8,771,400 = 87,714
The research
Fieldwork was conducted between 1–3 July, 2005 by the independent market research agency, BMRB. The survey provides 1,908 completed telephone interviews amongst adults aged 18+ investigating the GB population’s attitude and management towards house moving and domestic finances. The data is weighted to be representative of the GB population
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