Cost of Moving House in 2022
Without a doubt, Brexit and Covid-19 have had a negative effect on the cost of moving house in 2022. For the first time in over a decade we’ve had to increase our storage prices in order to keep in line with the current market.
So what will a home or house move cost in 2022, and why has there been such a big price increase? Read on to find out more…
Materials
During the first and subsequent lock-downs, many individuals resorted to online ordering. Due to the massive increase in online orders, the amount of cardboard being used increased exponentially. So much so we actually suffered from a cardboard shortage back in November of 2020, when the likes of Amazon bought all the cardboard available in time for Christmas.
Since then, online ordering hasn’t declined back to pre-2020 levels, and the price of cardboard has been rising ever since. At Purdie Worldwide, we’ve managed to keep the prices of our boxes at the same level since 2020. We also still offer a discount on packing materials to customers who book their removal with us.
It’s not just the price of our boxes that have increased in price. Other materials such as our sofa and mattress bags have also seen an increase in price. The supply chains could be a factor in this, but the cost of living in general has went up post-pandemic. Therefore it makes sense that the cost of moving house would increase due to these rises.
Fuel Costs
Back in 2020, the cost of fuel was down at 112p per litre. This meant that on average our big 18t trucks, getting between 10-12mpg, would cost around £50 for every 100 miles traveled.
Now that same 100 mile journey in June of 2022 now costs almost £100. Almost a 100% increase in fuel costs across the board. As a result this increase in fuel costs is a big factor in the rising cost of moving house.
Although we have developed our own electric charging station and run a small electric van for smaller deliveries. We believe that the charging infrastructure across the United Kingdom and abroad for electric vehicles, isn’t sufficient for hauliers as yet. Neither is the technology, with amount of energy used to mine battery materials like lithium, far outweighing the amount of energy used for a normal combustion car.
Wages
As of April 2022 that National Living Wage has increased from £8.01 an hour, to £9.50 per hour. As a living wage employer we don’t pay our staff the minimum wage, we pay them the UK Living Wage. So from May this year our wage bill increased by almost 20%. This had a knock-on effect as it’s not just those on the old living wage that would be expecting a wage rise.
The government’s scheme to fast track Class 1 drivers has also had an effect on the cost of moving home. With generous wages being offered by big companies to go drive their trucks, we couldn’t blame some employees for leaving for a better paid job with a lot less lifting involved! As a result, as the wages have increased, the cost of moving house has increased too.
Overheads
Before our Removals Trucks even leave the yard there are overhead costs that have to be factored into the cost of moving house. The recent rise in electrical and gas prices has had a negative effect on our pricing structure too. Although we benefit from solar panels off-setting some of our electricity usage, the cost of heating and lighting 4 warehouses and an office 365 days of the year isn’t cheap. Particularly in Scotland!
Another knock-on effect from the pandemic are the renewals for all our various insurance policies. We’ve seen increases in 2022 of more than 30% across the board. With public liability and truck insurance increasing the most.
What has been surprising are the rise of subscription costs to various organisations like the BAR and Which? Trusted Trader. From what was a good source of feedback for £50 a month, we’re now being asked for £550 a month! A crazy amount of money just to be on a review platform, I’m sure you’ll agree!
Find out the Cost of Moving Home here...
With all these factors coming into play, from material costs, staff wages, fuel prices and increasing overheads. It’s no surprise that the average cost for moving house in 2022 has increased. If you do a get a quote for moving home that’s a little too cheap, you’ve got to ask yourself, what corners are they cutting in order to be that cheap? Instead, get a quote from Purdie Worldwide by filling out our home removal form.
