Everyone feels the financial effect of moving home. Solicitors and surveyors fees, stamp duty and estate agency costs, removals and packaging plus not to mention all the smaller hidden costs that are un-budgeted for in the beginning. Moving home is significantly more costly for both parties than it was ten years ago. So, what is the average cost to move home these days?
A 60% increase in the cost of moving home
Research by the Centre for Economics and Business Research calculated that it now costs an average of almost £12,000 to move home (2014: £11,894). This is in fact almost 60% higher than costs a decade ago, which averaged £7,475.
Rising house prices are the main reason
The cost of services will have increased over time, so solicitors and agencies are charging more than they were ten years ago to help you move home. Yet much of this will be relative.
The key driving force behind the increase is simply due to rising house prices.
Even with the Stamp Duty Land Tax restructure in recent months, making it a cheaper option overall for those liable, the rising house prices are having an adverse effect as more properties are increasing in value and therefore creeping into the higher stamp duty brackets.
The consequences…
The consequences of rising costs are two fold. First time buyers are having to save for longer before they are in the position to purchase. Plus, those wishing to sell are generally also waiting longer to cover the added costs of their desired move and make their own savings perhaps for a higher deposit.