The £9,500 house move hits homebuyers’ pockets hard
The average cost of moving home has gone up to £9,486 according to website Propertyfinder, which means the process has more than tripled in price in the past 10 years.
The charges are comprised mainly of stamp duty and estate agents’ fees, which have risen to an average of £3,027, keeping pace with house price inflation.
Stamp duty, however, has rocketed from an average of £543 in 1996 to £5,009 now. The tax was then levied at just 1% on properties sold for more than £60,000, but the average house price was £64,441 so many people escaped paying it altogether.
Removal costs are in the £450 region, while legal fees add another £1,000 to the bill.
Warren Bright of Propertyfinder said: “In the past, when costs were lower, there was little to prevent people from making a number of small steps up the housing ladder.
“But now that transaction costs, especially stamp duty, are prohibitive, people are more reluctant to move, or are making bigger, fewer jumps up the ladder.”
Essex-based property consultant John Cornell said: “The average cost of a home in the UK is now over £200,000, so very few people escape paying the stamp duty when they make their UK investment into property.
“This has added considerably to people’s moving costs and as a result I think there is less ‘intermediate’ moving as homebuyers slowly ascend the ladder rung by rung. After all, if you are paying almost £10,000 per move it makes you think twice.”