Buying and selling a home is expensive and there are a lot of costs involved. While it is natural for buyers to focus on the cost price of the house, they need to make sure they can afford the deposit and then meet their monthly mortgage payments. However, there is also a need to consider the cost of other aspects of a property move.
A recent study by Reallymoving, which is a price comparison site for people moving home, indicates that the cost of moving home, which applies to buyers and vendors, equates to one-third of the median salary in the United Kingdom. This is close to £10,000 which is a lot of money at any point, but even more so when you consider the other costs a person has to contend with.
House price rises have a knock-on effect
The study suggests that estate agents and surveyors have maintained the price of their services but the increase of 6% has been significantly impacted on by house prices increasing by 3% in the past year. When house prices rise, there is also a rise in stamp duty and conveyancing bills, so there is a knock on effect for buyers to be aware of.
Some costs that were highlighted in the report include:
- The average cost of moving home stands at £9,812
- Median UK salary stands at £29,588, with the average cost of moving home one-third of this figure
- Average stamp duty cost is £4,500 which represents an increase of 11% on the previous year
- Average conveyancing cost for 2018 is £1,497, up from the £1,147 figure of 2018
- Average removal costs stand at £480
First-time buyers have benefitted from lower costs
However, the costs of moving home have fallen sharply for first-time buyers, by close to a third. In 2018, this figure stood at £1,809 and much of this is down to change in Stamp Duty for first-time buyers. This change occurred in November of 2017. In 2017, the average first-time buyer spent £800 in stamp duty but in 2018, this moved to zero, representing a significant change in costs for first-time buyers.
Rob Houghton, is the CEO of reallymoving, and he said: “It’s never been more expensive for homeowners to move, despite the fact that most providers of home move services, such as estate agents, removals companies and surveyors have refrained from increasing prices over the last year as they fight for business from a smaller pool of movers. “
At Spencer Harvey, we know there is a lot to consider and a lot of bills to take care of when you move home. If you’re looking for guidance, we can help.
As Stockport property specialists, we want to ensure you stay in touch with the latest property news. If you are looking for assistance in this area, give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html