Cost of moving hits record high

The cost of moving home in England has hit a record high after jumping 27% compared with last year to £14,045 on average.

The research by comparison website reallymoving.com – based on quotes generated by 181,000 home movers – suggests lower Stamp Duty thresholds introduced in April have been the primary driver of this sharp increase but other fees have also increased.

Conveyancing fees have climbed 8.7% year on year, survey costs are up 6.5% and removals charges have edged 1.5% higher to £709 for a move under 30 miles. The cost of obtaining an Energy Performance Certificate (EPC) is the only expense to remain unchanged at £65 according to the research.

The analysis uses an average estate agency fee of 1.4% based on HomeOwners Alliance data.

Home movers in London face paying £32,786 on average to buy and sell a property, largely as a result of higher house prices which drive up moving costs, according to the research.

Based on a median purchase price of £635,000, movers in London must hand over £21,750 in Stamp Duty, £6,887 in estate agent fees on their sale and £2,859 in conveyancing costs.

First-time buyers have lower costs overall at £2,315 on average due to Stamp Duty exemptions. But this is still up 6.5% as they will need to pay bills for conveyancing and surveys.

But London is the only location where, based on their median purchase price, first-time buyers are now liable for Stamp Duty, the research reveals, with an average tax bill of £5,500 in addition to other moving expenses, bringing their total cost of moving to £8,192.

There continues to be a sharp north/south divide in the cost of moving home, the research shows, with homeowners (buying and selling) in the least expensive region, the North East, paying £8,010 to move home – just one quarter of the total paid by movers in London. Similarly, in Yorkshire & Humber (£11,500) and the North West (£11,920), movers are much less burdened by Stamp Duty bills due to lower house prices.

The comparison website suggests that replacing Stamp Duty with an annual property tax on homes worth over £500,000 in the Budget could see the cost of moving plummet to £8,081, based on a median purchase price of £325,000.

Rob Houghton, founder and chief executive of reallymoving, said:

“The overwhelming cost of moving home now swallows up 46% of the median annual salary in England – a stark reminder of how transaction costs are acting as a significant barrier to mobility, market fluidity and broader economic growth.

“In years gone by, house price growth would enable people to build up significant equity which would then help fund the next move, but that can no longer be relied upon.”