Landlord News

Cost of Moving has Increased

It has been reported that the cost of moving home has increased at a quicker rate than house prices during the last decade to its highest level since the property market peak in 2007.

According to Halifax, since 2001, there has been a 69% increase in the average cost of moving home. This is now as high as nearly £9,000. Meanwhile, average house prices have only risen by 64%.

It has been revealed that estate agents’ fees are responsible for the biggest share of the bill at 38%. This is followed by stamp duty which is responsible for 21% and removals account for 12%.

Furthermore, mortgage arrangement fees are responsible for 12% whilst conveyancing accounts for 11% and surveyors are responsible for 6% of the share of the bill.

These average costs however, mask the huge costs which can be triggered by 3% stamp duty charges that face those that live in areas where a family home costs over £250,000.

Lloyds TSB have reported that the rise in the average cost of moving along with the rise in house prices have both outstripped official inflation which is at just under 40%.

Housing Economist at Lloyds TSB, Suren Thiru, has been quoted saying: “With the costs associated with completing a home move in the UK rising substantially over the past decade, the task for those looking to move home has undoubtedly become more challenging.”

They went on to add: “The significant rise in home moving costs is particularly concerning at a time when demand in the UK housing market is weak.”

Meanwhile, mortgage arrangement fees have escalated the most. They are up a staggering 252% from an average of £306 to a rather large £1,076.