Buyers now shell out £17,500 to move home as stamp duty drives huge rise in bills in last decade
Buyers must now shell out £17,500 to move home, with stamp duty accounting for more than half the cost.
The cost of moving in England is now 75 per cent higher than it was a decade ago, even after adjusting for inflation, according to comparison website Really Moving.
The firm analysed data from 20,400 home moving quotes to calculate the typical cost of buying and selling a property.
It found the average home mover forks out £17,413 in total, while for first-time buyers it’s just £2,293.
Buyers are shelling out £9,500 on stamp duty costs alone, according to Really Moving
The cost of moving has actually fallen £418 since last year, however, as struggling property prices have triggered lower stamp duty and estate agent bills.
The median purchase prices fell from £395,000 to £390,000 this year, which has slightly eased pressure on buyers.
Some £9,500 of the moving cost is stamp duty while estate agency fees are £4,473.
Removal fees total £624, a fall on last year’s £709 cost. The remainder is made up of conveyancing costs, a survey and an Energy Performance Certificate, which sellers must provide when putting their home up for sale.
The soaring cost is forcing families to stay put in their homes, even when it no longer suits their needs.
Rob Houghton, founder of the firm, says: ‘Movers will be relieved to hear the cost of moving has eased a little this year, but the longer-term picture is far less reassuring.
‘Moving home costs almost three-quarters more than it did a decade ago, even after accounting for inflation, making it a major barrier to mobility and economic growth.
‘It prevents people from relocating for a new job, discourages growing families from moving to larger homes and makes downsizing much less attractive.’
Londoners pay almost double rest of country
There’s a huge chasm in moving costs across the country. Varying property prices are the biggest driver, as this directly affects stamp duty and estate agent fees.
But conveyancing and removals firms will also charge different amounts in different regions.
London has the highest costs at £32,017, mostly driven by high stamp duty bills and estate agent costs.
After this it’s the South East at £22,765, the East of England at £19,302 and the South West at £17,292.
For the West Midlands moving home costs £14,614, compared to £13,258 in the East Midlands and £12,707 in the North West.
Yorkshire and the Humber, and the North East have the lowest moving costs at £11,816 and £8,806, respectively.
To keep costs down, you can move mid-week or in an off-peak season. Demand for removals surges on Fridays and in the summer. Firms may offer cheaper rates if you move outside of these peaks.
First-time buyers pay just fraction of the cost
Those buying a starter home pay just £2,293 to move into their new house, Really Moving says.
First-time buyers only have costs associated with buying a home, rather than selling, which dramatically slashes the bill.
Plus, their median purchase price is just £250,000, which means the average first-time buyer is exempt from hefty stamp duty bills.
For most people, stamp duty kicks in on the proportion of a home’s value above £125,000.
First-time buyers get a bigger exemption and only pay stamp duty above £300,000.
They must also shell out £1,445 for conveyancing, £474 for a survey and £374 for removals.
However, there’s still a massive price difference across the country.
In the West Midlands, young buyers need to pay £2,229 while in London it’s £2,813.
Houghton adds: ‘The London data highlights the unfairness of the flat stamp duty threshold of £300,000, which doesn’t reflect variations in property prices.
‘The average first-time buyer in the capital must find £5,250 in stamp duty, taking their upfront moving costs to almost £8,000 before a deposit is even considered.’
