17th April 2015
It’s not just the cost of property that is increasing, moving home now costs over £8,500, according to research by Lloyds.
Homeowners shelled out a total of £7.5 billion in 2014 on moving costs alone, a 15% increase on the year before. Individually the cost of moving home has risen 5% to £8,689 in 2014, from £8,258 in 2013 and is now at its highest level since the housing boom of 2007 when it was £8,761.
The increase in fees of £431 in the past year was driven by fees paid to estate agents and surveyors, which accounted for £386 of the total rise in moving costs.
A breakdown of the moving costs show a 7% increase in estate agency fees and a 22% growth in surveyor frees to £665 in the final quarter of 2014.
Conveyancing fees also increased 7% to £1,074 and average stamp duty fell 1% to £1,973, driven by the stamp duty reform introduced last year.
Stamp duty accounts for 23% of all moving costs and estate agents fees account for 45%.
Moving costs have kept in line with house prices; in the 10 years since 2004 the total cost of moving has increased by 15%, the same as the average house price. Over the same period, average annual earnings have increased by 24%.
Andy Hulme, mortgages director at Lloyds Bank, said: ‘With the cost of moving at its highest level since 2007, people struggling to cover the costs should look to make savings wherever they can. The recent changes in stamp duty should help buyers reduce their overall cost of moving, which can be a significant boost.’
Regionally, homemovers in the north and Wales have seen average costs fall in the past year. In Yorkshire and the Humber they have fallen 8% to £5,875, and in the North East and Wales they are down 7%.
Those living in the capital, however, have seen costs rocket 11% to £23,116 – the most expensive moving bill in the UK. The cost of moving in London equates to half the average gross full time earnings of those living in London.