Skip to main content

Moving home cost rockets 70% and stamp duty sends South East move above £16k,,,

The cost of the fees and taxes incurred in moving home has jumped by almost 70 per cent in the past ten years to hit £9,000 and outstripped the rise in house prices, according to a new report.

And for families caught by the 3 per cent stamp duty trap, the costs involved with simply moving house have soared much higher – with those buying a property costing more than £250,000 instantly hit with a tax bill of at least £7,500.

That means those in the South East pay an average of £16,500, while London home movers pay £19,500, a Lloyds TSB report said.

Getting bigger: The cost of moving has risen at a rapid pace, faster than both house prices and inflation

With mortgage lenders demanding big deposits or substantial equity for the best rates since the financial crisis hit, the added high cost of moving has played a major part in keeping property sales stuck near record low levels.

The report looked at the cost of moving home, in terms of stamp duty, mortgage arrangement fees, estate agency fees, surveyors and solicitors’ costs and removal costs.

It said that for the average mover estate agents’ commission on their home sale still made up the biggest proportion of the cost at 38 per cent, or £3,400, and stamp duty followed behind at 21 per cent, or £1,876.

But the average masks the huge costs triggered by a three per cent stamp duty charge that faces those living in many areas where a family home costs more than £250,000.

A This is Money report last November highlighted how if that £250,000 threshold had risen in line with house price inflation since it was introduced, it would now stand at £650,000, while the £500,000 threshold for four per cent stamp duty would be £1.3m.

Lloyds report found that the average home moving bill is up 69 per cent on a decade ago, while the average house price was up 64 per cent. Both have outstripped official inflation of just under 40 per cent over the same period.

A quarter of your pre-tax salary just to move

House moving costs are currently equivalent to 27% of average UK gross full-time earnings, up from 22% in 2001.

Suren Thiru, housing economist at Lloyds TSB, said: ‘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.

'The significant rise in home moving costs is particularly concerning at a time when demand in the UK housing market is weak.’

The Lloyds report also highlighted the better position that first-time buyers find themselves in when it comes to homemoving costs, as they pay on average 63 per cent less at £3,300.

This is thanks mainly to having no property to sell and therefore not having estate agency fees and also to the current stamp duty break for new homeowners buying below £250,000.

Lloyds said: ‘The removal of this concession in March will result in a significant increase in house buying costs for many first-time buyers.’

Number crunching: How the cost of moving home has risen across Britain

  More... Stamp duty calculator: What would you pay? True cost mortgage calculator - rates AND fees Mortgage tables: Can you get a better rate

How to trim the high cost of moving

Moving is a very expensive business. Once you overcome the big hurdle of raising the chunky deposit or equity mortgage lenders want for good rates, you then need to dig even deeper to actually fund the cost of the move.

For many this is impossible, hence home sales running near record lows, but even in a slump there will still be those who move, some through choice and others through necessity.

Tips: Moving is expensive, but you can try and trim the costs, says Simon Lambert

My wife and I fell into the latter category last year, we had run out of room in our one-bedroom flat after the arrival of our baby daughter in October 2010, and so last year we sold our flat and after much searching bought a bigger one.

Along the way, we did a few things to save ourselves money. Firstly, we negotiated on estate agency fees - which Lloyds says is the biggest average moving cost. We negotiated them down from 1.75 per cent fees to 1.5 per cent, but also put in a clause that said if they didn't get us above a certain amount, we would pay a lower 1.25 per cent fee.

Agents want to sell homes and get good properties on their books, if you make it clear to them you are a serious seller, are not going to demand an unrealistic asking price on your property, they will negotiate.

Even better, you could opt to try and sell your home yourself, either through a listings website, or a flat-fee agent. This could save you thousands.

We also opted for a fee-free mortgage, which helped save at least £1,000 in terms of arrangement fees and also the free valuation and conveyancing that was bundled in. Mortgages for homebuyers that offer free valuations and conveyancing are rarer than remortgages that do, but they do still exist. Ours was a Nationwide five-year flexible tracker.

The final saving was on removals. Rather than pay a removal firm, we did it with the help of a man and a van for the big stuff and a bit of enlisted friend and family help for other things. We were in the position of moving from a one bedroom flat, so our belongings were limited and that made doing our own removals easier, others may decide that this is one cost well worth paying.

Finally, there was one thing we could do nothing about: stamp duty. Living in London, this was our biggest hit:it almost stopped us moving and has taken a massive chunk out of our savings, an overall effect that when spread across the nation I would argue is not good for the economy.

Home moving costs: How they add up for the average mover




Popular posts from this blog

Study Abroad USA, College of Charleston, Popular Courses, Alumni

Thinking for Study Abroad USA. School of Charleston, the wonderful grounds is situated in the actual middle of a verifiable city - Charleston. Get snatched up by the wonderful and customary engineering, beautiful pathways, or look at the advanced steel and glass building which houses the School of Business. The grounds additionally gives students simple admittance to a few major tech organizations like Amazon's CreateSpace, Google, TwitPic, and so on. The school offers students nearby as well as off-grounds convenience going from completely outfitted home lobbies to memorable homes. It is prepared to offer different types of assistance and facilities like clubs, associations, sporting exercises, support administrations, etc. To put it plainly, the school grounds is rising with energy and there will never be a dull second for students at the College of Charleston. Concentrate on Abroad USA is improving and remunerating for your future. The energetic grounds likewise houses various

Best MBA Online Colleges in the USA

“Opportunities never open, instead we create them for us”. Beginning with this amazing saying, let’s unbox today’s knowledge. Love Business and marketing? Want to make a high-paid career in business administration? Well, if yes, then mate, we have got you something amazing to do!   We all imagine an effortless future with a cozy house and a laptop. Well, well! You can make this happen. Today, with this guide, we will be exploring some of the top-notch online MBA universities and institutes in the USA. Let’s get started! Why learn Online MBA from the USA? Access to More Options This online era has given a second chance to children who want to reflect on their careers while managing their hectic schedules. In this, the internet has played a very crucial in rejuvenating schools, institutes, and colleges to give the best education to students across the globe. Graduating with Less Debt Regular classes from high reputed institutes often charge heavy tuition fees. However onl

Sickening moment maskless 'Karen' COUGHS in the face of grocery store customer, then claims she doesn't have to wear a mask because she 'isn't sick'

A woman was captured on camera following a customer through a supermarket as she coughs on her after claiming she does not need a mask because she is not sick.  Video of the incident, which has garnered hundreds of thousands of views on Twitter alone, allegedly took place in a Su per Saver in Lincoln, Nebraska according to Twitter user @davenewworld_2. In it, an unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of the customer recording her. Scroll down for video An unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of a woman recording her A woman was captured on camera following a customer as she coughs on her in a supermarket without a mask on claiming she does not need one because she is not sick @chaiteabugz #karen #covid #karens #karensgonewild #karensalert #masks we were just wearing a mask at the store. ¿ o