New research produced by home services company Really Moving has revealed the true cost of moving house. The company found that on average, we Brits spend almost £30,000 on moving house in a lifetime. Meanwhile, Londoners lavish two and half times that amount.
A single move in England and Wales costs an average of £8,264 and £28,952 a lifetime. In London, the figure is £20,739 and £75,972.
Really Moving also found that the cost of a move is equivalent to 31~% of national average earnings and 61% for Londoners. Conversely, home move costs in Northern Ireland are equivalent to 22% of national average earnings.
Why such a big gap between the capital and the rest of the country? Apparently, it’s all down to Stamp Duty. Higher house prices automatically means home buyers move up a couple of tax brackets, which bumps the average London home move cost up considerably, accounting for the significant difference between the capital and the rest of the nation. The typical Londoner pays 3% in Stamp Duty on a home purchase. Fees for conveyancing and surveys also tend to be higher in the capital city.
Really Moving calculated its figures based on a home purchase of £228,000. The cost breakdown is as follows:
- · Estate agent fees: £4,104
- · Stamp Duty Land Tax: £2,280
- · Conveyancing for sale and purchase: £805
- · Homebuyer’s Report Survey: £355
- · Energy Performance Certificate: £60
First time buyers tend to spend less than home movers on all of the above. The average first time buyer pays £3,700 in moving costs. This is due to a lack of estate agent fees, conveyancing on a sale and an Energy Performance Certificate. Removal costs tend to be lower too, as FTBs usually have far fewer possessions to transport than home movers. There’s also the matter of purchasing power. Traditionally, FTBs choose cheaper properties. If priced below £125,000, there is no Stamp Duty to pay.
Rosemary Rogers, director of Really Moving, said: “Taking a chunk of equity out of your sale to cover the costs of a move is no longer a viable option for many sellers who need to keep hold of their existing equity in order to secure the best possible mortgage rate on their new home. As a result, buyers are more prepared to negotiate hard with estate agents over fees and shop around for the best conveyancing and removals quotes to keep costs as low as possible.”
Source: Property Wire.