Growth in stamp duty and conveyancing fees fuelling a 2% year-on-year rise in moving costs
The cost of moving home has increased for a fourth consecutive year, according to research by comparison site reallymoving.
Homeowners in the UK are now having to spend an additional 2% on moving home compared with last year, bringing the average household’s moving costs to a new record high of £10,414.
Breaking down the figures by region shows that homeowners in London have to pay more than twice the UK average, spending around £24,585 to move to a new house.
By comparison, owners in the North East and Northern Ireland spend just over half on moving at an average of £5,513 and £5,735 respectively.
The 2% year-on-year rise is largely being attributed to the rising costs of stamp duty resulting from consistent price growth over the last few years, as well as more expensive conveyancing fees.
Of the UK’s average £10,414 moving cost, the stamp duty tax makes up a large portion at £4,625 or 44.4%.
Being exempt from paying stamp duty, however, first-time buyer costs are significantly lower than those of homeowners, coming in at an average across the UK of just £1,613; almost 85% less than those for existing property owners, whilst in London this rises to over £5,500.
As well as stamp duty and conveyancing, reallymoving notes the other costs of moving include estate agency fees, home surveys, removals, and energy performance certificates (EPCs).
Rob Houghton, CEO of reallymoving, said: “Homeowners are having to dig deeper than ever before to fund a home move, with upfront costs reaching another record high in 2019.
“A marginal annual increase in house prices has led to higher stamp duty and conveyancing bills, meaning movers now have to find almost £10,500 which is a significant chunk of cash to raise from property equity or personal savings, on top of their deposit.”
Recent analysis by Hometrack suggests that first-time buyers are the main driving force behind property sales in the UK.