Friday, 24 September 2021

Cost of moving house has hit a record high

THE average cost of moving house in the UK has increased by £870 over the past

THE average cost of moving house in the UK has increased by £870 over the past year to £10,996 — according to the latest research from Lloyds Bank.

This is a nine per cent rise and is well above the 0.5 per cent increase in the consumer price index and annual growth in average earnings of 1.5 per cent.

Rising house prices are the main factors behind the increase in moving costs, pushing up estate agency, stamp duty and conveyancing fees, which are all typically linked to the purchase price.

Higher estate agency fees account for more than half of the increase in average moving costs, which have risen by £4,023 (eight per cent) to £5,404 this year.

Average stamp duty costs have increased by £372 (17 per cent) to £2,504, and legal costs are up by £93 (eight per cent) to an average of £1,251.

As you’d expect, figures differ widely across regions, which largely reflect local property price trends.

Greater London has seen the average cost of moving increase more sharply over the past year — by £4,732 (18 per cent), more than five times the national increase of £870.

This is largely down to the fact that Greater London house prices have risen by 14.5 per cent over the past year compared to the UK average of 8.5 per cent.

The average moving cost in London stands at £31,416 — nearly three times the UK average — and the average home-mover in the capital pays more than £15,000 in stamp duty and £11,000 in estate agency fees.

The South East is the second most expensive region for moving, with an average outlay of £20,210 — a rise of £3,382 (20 per cent) since last year.

At the other end of the spectrum there has been virtually no change in Wales and only very small rises in the North West (one per cent) and Scotland (two per cent), with Northern Ireland having the lowest moving costs at £5,401.

Mike Songer, mortgage director at Lloyds Bank, said: “The cost of stepping up the housing ladder has continued to rise sharply over the past year. As a result, the cost of completing a home move in the UK has grown significantly over the past decade.

“This trend is especially marked for buyers in London and the South East, with the combination of both higher property prices and more rapid increase in prices in recent years resulting in significantly higher moving costs in these parts of the country.”

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