Jumps in stamp duty and estate agents’ fees have led to a near-£500 increase in moving costs in the past year.
The average cost of moving home has soared by nearly twice the rate of inflation during the past year to break through the £12,000 barrier for the first time.
The typical bill home-movers can expect to receive for everything, from stamp duty to removal costs, has risen by nearly £500 in 12 months to stand at £12,110.
The jump of 4% is nearly double the increase seen to Consumer Price Index inflation. And it means that the average cost of moving is equivalent to more than a third of gross annual earnings, according to Lloyds Bank.
Estate agency fees account for the biggest proportion of moving costs at an average of more than £5,700, followed by stamp duty at £3,262.
Homeowners can also expect to hand over:
- £1,326 in conveyancing costs
- £1,168 for home removals
- £565 in surveyors’ fees
- £60 for an Energy Performance Certificate (EPC)
Why is this happening?
More than half of the increase can be attributed to stamp duty, which increased by 13% or £365 on average during the past year, while estate agency fees jumped by 3% or £158.
But these increases were partially offset by a £100 fall in the average cost of surveyors’ fees, while there was no change in the charge for an EPC.
Above: Four-bedroom semi-detached house for sale near Neston, Cheshire
Who does it affect?
But while moving costs have increased by 8% in the West Midlands during the past year, they have actually fallen by 13% or £1,053 in Wales in the same period due to a change in the thresholds at which land transaction tax is charged.
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What’s the background?
The cost for a homeowner to move home has soared by nearly a third or £2,890 across the whole of the UK during the past decade, outstripping house price growth of 26%.
Within this total, stamp duty has seen the biggest increase of £1,161, followed by estate agency fees at £1,285.
But surveyors’ fees have increased by just £25 during the same period, and the cost of an EPC has not changed at all.
On a regional basis, the south east has seen the biggest hike in moving costs, with these rising by 92% in the past decade, significantly more than those for London, which is in second place and has seen an increase of 64%.
Meanwhile, in Northern Ireland and Wales costs are 31% and 15% lower respectively than they were a decade ago.
Top 3 takeaways
- The average cost of moving home has soared by nearly £500 in 12 months to stand at £12,110
- The rise of 4% is equivalent to more than a third of average earnings
- Estate agency fees account for the biggest proportion of the cost at an average of more than £5,700, followed by stamp duty at £3,262
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