Cost of home move services well below pandemic peak in real terms

The cost of home move services is shown to well below the pandemic peak in real terms, according to analysis by reallymoving.

When adjusted for inflation costs for conveyancing and removals are significantly below the post-pandemic period, reallymoving’s quarterly Home Move Costs Index has revealed.

This is despite such firms putting their rates up by 5.1% year-on-year.

Conveyancing costs are 23% below the pandemic peak, which is partially due to lower demand from homemovers, as we’re in a slower market than during the years when low interest rates and the stamp duty holiday were firing up the market.

Similarly surveying costs are 24% lower than in 2021 when adjusted for inflation.

Removals firms have had more success maintaining price growth, as their costs are down just 6% compared to 2021.

Home movers are now paying £804 for professional removal services, compared to £761 a year ago.

Rob Houghton, chief executive of reallymoving, said:

“This analysis lays out the scale of the pricing issues facing home move service providers, who benefited from strong price growth during the pandemic, bringing prices to much fairer levels, but have been unable to hold onto those gains in real terms.

“When adjusted for inflation, prices for conveyancing and surveying have fallen back by 23% and 24% respectively since the pandemic peak, when the race for space was further fuelled by the extended Stamp Duty Holiday.

“Removals costs also peaked in 2021 but they have since almost kept abreast of inflation and are now only 6% lower in real terms.

“The property market continues to face headwinds and until the first base rate cut we’re unlikely to see any substantial increase in demand.

“It may take some time for conveyancing and surveying firms to implement the level of price increases that are required to recover their profit margins, whilst also remaining competitive.”

Kindly shared by Property Wire