How to start up a house clearance business in the UK – The Essential Guide

how to start up a house clearance business in uk 2022

It takes a significant amount of money and training to start a house clearance business anywhere in the world, including the United Kingdom.

Aside from that, you’ll also require a waste carrier licence, public liability insurance, and a commercial van, and you must realize that running a house clearance business requires more help than one person, so hiring a helping hand must be put in mind too.

Today many people would like to relocate to another location or maybe real estate practitioners would want to sell a house, so the best way to clear a house is to call upon a house clearing company and that might be you.

Starting a house clearance business is a profitable one, maybe not just a get-rich-quick scheme. but with the right business plan, you wouldn’t find it so difficult. 

This guide will help you to understand how to start up a house clearance business and make a profit from it in 2022 and beyond. However, let’s first examine in detail what a house clearance business is all about.

What is house clearance Business service all about?

A house clearance service is a process of moving or transferring properties, waste, or household items from one location to another to make space.

Any company offering the service may also clear areas like garages, lofts, sheds, gardens, basements, and more.

Companies that provide house clearance services are required by law to be registered waste carriers with the Environment Agency in the UK.

How does House clearance business work in the UK

One of the basic ways house clearance businesses work is that they take away items that are either not being valued by a client and sell or recycle them. Whatever mode of operations, would be decided by the customer and the effect would be carried out by the cleaning company.

The moved items should be sold for the best results for your company and your client. You can purchase the goods from your clients and resell them to potential buyers or even an auction house.

Another way a house clearance company operates is by transporting waste to recycling facilities, where it is only permitted if the company is registered with the environmental agency and has a permit to recycle waste locally.

Finally, the house clearance company will take the items to a registered waste facility if neither of those two options is possible. That’s why you’ll need to register your house clearance business before launching your services nationwide.

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To get paid for a house clearance service, your service costs can range from £650 to £1,500 for a typical four-bedroom home with an average amount of decor and effects. 

But they can vary greatly depending on several variables like parking accessibility, high-rise buildings with only stair access, and the amount of volume/kg inside the home.

How about finding out if a house clearance business will be profitable in 2022 before starting one?

Is House clearance business Profitable in the UK 

Yes, the house clearance business is profitable and has the potential to make you wealthy if you are willing to invest your time and money.

The average cost of house clearance in the UK ranges between £170 and £200, depending on the size of the load. However, if you have a medium clearance of up to 750kg or three-quarters of a large van load, the cost may rise to £250 – £300.

To be honest, starting a house clearance business in the UK is not as simple as one might think. Setting up the business is stressful, time-consuming, and leaves one feeling as if nothing is happening.

Also, be aware that hazardous waste permits are required for televisions, refrigerators, and paint, among other things, and that insurance for this line of work is not cheap. 

Also, keep in mind that this is not a get-rich-quick scheme and may result in financial ruin. So, before you start a house clearance business, do a good research so you can outperform competitors and scale higher. Below is a guide on how to set up a house clearance business in the UK in 2022.

11 Advance Guide on how to start up a House Clearance Business in 2022

1. Draft a Good Business Plan

A business plan is the foundation of any start-up. without a good plan, you might not be able to advance higher in the clearance business.

When writing your business plan, it is important to always include the goal of your business, business profile, target audiences, and more

When setting up a waste removal business plan, the following procedures must be outlined boldly.

i. Understand the Industry 

It is essential to understand the type of business you want to start, as well as your competitors’ strategies for success. You should also understand how to finance your clearance business.

A house clearance business generally requires sufficient funding for registration, tool purchases, site location, and other expenses. So, with a good business plan, you’ll be able to figure it all out.

ii. Conduct Market Research

You will be able to understand and gain deep insight into the business with good market research.

Always consider campaign effectiveness, competitor research, consumer research, customer segmentation research, product development, and other factors when researching your startup.

iii. Decide if you would buy an already established house clearance business

Starting your brand from the scratch is always the best option because it allows for motivation and growth. The capital required to purchase an already established house clearance business may be large and unaffordable.

Instead of buying an established brand, try to create one for yourself, or better still, look for a partnership or a junk removal group.

iv. Choose your company’s name

This may not be the best layout option right now, but the sooner the better. Keep in mind the best name for your clearance business. This would be your vision, and it would bring out your seriousness.

2. Make a Budget and financing plan for your business

One of the most important aspects of budget and financing is ensuring that your business does not face any financial difficulties down the road. For example, not having enough money to buy items, not being able to replace damaged business tools, and so on.

Strategizing your source of finance aids in overcoming the dilemma of going out of business. You should also understand how to manage funds within the company and plan for long-term expenditure of funds on various aspects.

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3. Make market research and analysis 

There’s a need for market research when trying to start up a house clearance business. Market research helps you to understand how customers would like your service to be rendered.

Some clients may prefer a nighttime home clearance, while others may prefer a daytime clearance. There is no debate here; your job is to complete the project and collect your pay.

Aside from that, it provides you with an overview of what is trending in the industry and what motivates users to convert and want your clearance services.s.

4. Secure a good location for your business

To set up a house clearance business, you might also need a good location or site. When trying to secure a location, make sure it is business-friendly and safe.

Choose a location with good road construction, easy access, plenty of parking space, ultimate security, and more. To save money, consider joining or partnering with an already established house clearing services group; this will also provide you with insight into how the business is run.

5. Get appropriate Training

To know how to start a house clearance business effectively, you must go for training and seminars. One of the main importance of training is that it allows you or your business to become more effective, and helps boost and strengthen your organization’s performance.

Although I cannot recommend any online training services for a house clearance business coach, you can conduct market research and meet one-on-one with a dedicated competitor to learn the ins and outs. As a result, as the saying goes, experience is still the best teacher.

In addition, you can get house clearance books and learn how most organizations operate their business.

6. Buy all needed equipment and van

To get your clearance business up and running, you’ll need to acquire all of the necessary equipment to facilitate easy clearing and parking of items. Most particularly, a van for transporting movable items to locations where they will be sold, recycled, or trashed.

But that doesn’t matter, if you don’t have a van, you can make provision for that or make rent. 

7. Obtain liability insurance

Liability insurance protects business owners and self-employed individuals from the costs of compensation claims brought against them by clients, customers, or members of the public due to their negligence in the handling of items.

Here’s an inevitable step to follow. You must acquire an insurance policy against damaging your customers’ fabrics or items.

8. Get a waste carrier’s license from the Environment Agency

A licence is necessary for commercial waste disposal at municipal solid waste landfills. It is ideal to apply for one before securing your first clearance job opportunities.

A house clearance business would require you to recycle, dispose of waste, or mine waste. Hence, you may need to apply for an environmental permit with the Environment Agency UK. 

This permit may be for operations at a single location or for mobile equipment that may be used at various locations.

9. Get your clearance business registered

You can then register your business with the Association Of UK House Clearance Companies after obtaining all necessary licences and insurance.

However, your company must be registered with the UK Tax Office and have been in operation for at least a year before you can join.

The current code of conduct must be accepted by you. Your business will be kicked out of the association and listed on the rogue sites register if you don’t comply.

10. Dumping Junk At Your Local Recycling Centre

What do you intend to do with the waste you collect from your clients, Dump them? Nope, you’ll need to settle them and sort every useful good or item that might still be valuable. Most of the items could also be recycled at your local recycling center.

11. Advertise your brand 

To gain more customers, you’ll need to advertise your brand through social media, newspapers, journals, billboards, and more.

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Advertising helps your business grow and attracts new customers who are eager to do business with you. But then before you advertise, make sure you can offer your service.

This means that you should have a website, a catchy logo, a good website layout design, and more. If you don’t have a website you can still use your social media.

Conclusion to setting up a waste removal business

A house clearance business service would always be in demand. Classically, house clearance is most particularly required after a death in the family. Relatives don’t often do the job of packing up during this period of grief, so here your service would be needed.

In addition, those who plan to sell their homes and relocate abroad or to a permanent location seek out house clearance services. Strong relationships with real estate agents can help you get the most out of this business because they will result in regular sales and business growth.

This was a guide on how to start up a house clearance business in the UK. Hope it was helpful and educational, if so, don’t forget to like, share and comment below

Here are some frequently asked questions about hiring and setting up a house clearance business in 2022

Below are some questions you would like to know about before venturing into the clearance business in 2022.

What is the average cost to start a house clearance in the UK?

The average cost to set up a house clearance business ranges from £10,000 – £40,000. This might be enough to get all the required equipment available for use. Equipment such as Van, bin, gloves, helmets, hard boots, and more.

how to set up a house clearance business

To set up a clearance services business, you must first create a good business plan, analyze your budget and finance, do market research, get a good location that is business-friendly, get all necessary licences and insurance for your company and then advertise to your customers. 

Who pays for house clearance after death

The short answer here is that the next of kin is responsible to pay for a house clearance after the death of a family member and if the deceased doesn’t have a next of kin, then the estate management is responsible to take the bills.

The management would refer the items to charity homes, and local recycling centres for recycling, or if the deceased had some bills to pay, they might sell them off and then cover up and these must be done with legal means.

How much does the council charge to clear a house

However, in our experience, the turnaround of council properties after death can mean that you have only a very short time of 4 weeks [one month] to clear and clean the council-owned property before vacating it. Some local councils offer house clearance services and can be sympathetic to situations.

Council fees for clearing a property can run anywhere from £70 to $2500. These are typically one-time charges for the work between £70 and £100, with costs for both large and small items ranging up to £2500. A set fee of £70 to £100 is charged for clearing out garages and gardens, plus extra fees for small and large items.

An insight on starting up a house clearing business

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