Home moving costs rise slowly
The cost of moving has risen more slowly than house prices since the beginning of the millennium.
For those on the lower rungs of the property ladder, the cost of moving from an average terraced home priced at £149,906 to a semi-detached of £174,744 is £5,304 in England and Wales. In 2000 home movers paid £3,333 to move from the same type of home, that’s an increase of 59 per cent compared to house price growth of 95 per cent on these types of homes.
However, the costs are up dramatically the further up the ladder home movers go. Moving from an average semi valued at £174,744 to a detached home worth £293,248 costs a massive £12,535 today compared to £4,535 in 2000 (an average detached property cost £161,086 in 2000). That’s an increase in fees of 176 per cent compared to house price growth of 70 per cent. This can be largely attributed to detached properties having gone through the government’s three per cent stamp duty threshold set at £250,000.
Andy Gray, head of mortgages for the Woolwich said: “Contrary to popular opinion the increase in moving fees since the start of the decade for people on the lower rungs of the property ladder has not kept pace with house price inflation, and therefore should not be putting them off getting on the property ladder or taking the next step up. Competition amongst solicitors and estate agents has increased as the less buoyant market has meant less business to chase.