It now costs more than £11k to move home
This significant 6% rise comes at a time when the annual growth in average earnings is just 2% and the price we pay for goods and services is up 3%, according to Lloyds Bank.
The main reason for the increase in moving costs is rising property prices, which are pushing up estate agency fees, Stamp Duty and conveyancing fees, all three of which are usually linked to the purchase price.
Over half of the increase in average moving costs in 2017 has been due to Stamp Duty, which has risen by £393 to £2,897.
Estate agency fees have also jumped by £1,673 to £5,571 and legal costs are up by £39 (3%) to an average of £1,290.
South West hike
Average moving costs in the South West rocketed by £2,345 (21%) over the past year, said Lloyds Bank – four times the national increase of £628. Moving costs in East Anglia also shot up, rising by £1,936 (18%).
At the other end of the scale, and the country, costs have fallen in the North East (-8%), Scotland (-8%) and Yorkshire and the Humber (-1%), reflecting property price differences in these areas.
The average moving cost in London is £32,092 – nearly three times the UK average. The average homemover in the capital pays just under £16,000 in Stamp Duty and over £11,000 in estate agency fees. This cost of moving in the capital equates to a substantially higher proportion of annual gross earnings than nationally: 73% against 34%.
Northern Ireland has the lowest moving costs, at £6,131 (20% of average earnings).
Andrew Mason, mortgages product director at Lloyds Bank, said: “The cost involved when moving home has continued to rise over the past year, making it even more difficult.
“Those looking to move in London are facing a considerable challenge with the cost involved being nearly three times the national average. The combination of both higher property prices and the rapid increase in those prices in recent years results in significantly higher moving costs.”