THE ‘additional costs' of moving home, such as estate agent fees and conveyancing costs have increased by almost 60 per cent since 2004 – compared with a 29.4 per cent increase in the cost of living, according to research from Post Office Money’s Cost of Buying & Moving study.

The study, compiled by Post Office Money and the Centre for Economics and Business Research (Cebr), found these costs increased from £7,475 in 2004 to £11,844 by the end of 2014. These expenses increased by 20 per cent in the last year alone, adding yet another challenge for prospective buyers and movers.

Despite the cost of moving increasing, the majority of prospective home buyers are still underestimating the amount they will need to set aside. Those hoping to buy in the next three years expect to spend just £6,895 on moving costs – just over half of what they should actually be budgeting.

With forecasts indicating the additional costs of moving will have hit £15,414 by the end of 2020, these would-be buyers face an even greater shortfall in the amount they need to set aside.

Commenting on the findings, John Willcock, head of mortgages at Post Office Money, said: “With prospective home buyers’ attention firmly fixed on saving for a deposit, the additional costs of moving can often come as an afterthought – particularly for first-time buyers who are taking their first steps on the property ladder. Although house prices may continue to rise there are steps buyers and movers can take to reduce the amount they pay on top of this.

"Planning ahead is essential and potential homebuyers should be setting aside savings specifically for these costs. These ‘add-ons’ should be considered as part of the overall cost of buying or moving home.”

One of the most significant moving costs to increase over the past 10 years is the fee charged by estate agents. This cost has jumped .

Other fees to consider when moving to a new home include conveyancing costs and surveyors’ fees which have increased by 37 per cent to £1,419 and 51 per cent to £607 respectively over the last decade.

Even renters who move between properties are not exempt from moving costs; the amount charged by the average removals service has increased by 21 per cent to £1,034.

John Willcock adds: “The good news is the government’s recent stamp duty reforms have relieved some of the financial pressure of buying and moving home, and by cutting the amount they pay for additional costs prospective buyers can ensure they’re spending as little as possible.”