Cost of moving home hits new high

Cost of moving home hits new high

Recent research has indicated that the cost of moving home has reached a record high.

According to reallymoving.com, the average cost of moving home has risen for a third consecutive year, recorded at £7,381 – the highest it’s been since 2010.

Of the cost, £3,254 goes towards estates agent fees, representing around 44% of the total amount spent. Whilst this is just under half, estate agent fees are at a record low when considered as a share of the moving cost. The issue arises when looking at the growth of house prices; having increased at an average of 28%, it means that in absolute terms, the fees remain relatively unchanged.

Just behind estate agent fees comes stamp duty, representing on average 27% of the total cost of moving. The rise in proportion can similarly be attributed to house price growth, although this has been alleviated somewhat by the recent abolition of the tax for eligible first-time buyers. Whether this will bring significant benefits for buyers, however, is yet to be seen; the change has received criticism for only affecting a small share of the market.

Commenting on the figures was Rob Houghton. The CEO of reallymoving.com said: “Increases in fees for services and, in particular, for stamp duty has seen total cost of moving rise to the point where a single move costs nearly a third of the median annual salary.  While there is no simple fix, there are a number of measures that consumers can take to manage the condition.  Buyers can reduce the cost by shopping around, using well-priced and well-reviewed conveyancers, surveyors, removers, and estate agents.”

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