The cost of moving has risen to a record high, with rising house prices over the past year pushing up the amount spent on stamp duty, estate agents and conveyancers.
New data obtained exclusively by Which? shows that existing homeowners spend just over £14,000 when moving house, but that the bill for first-time buyers is significantly smaller.
Here, we analyse why the cost of moving has risen and explain what's happening in the property market.
Average cost of moving rises above £14,000
A new report by the price comparison site Reallymoving shows that the average cost of moving house has risen by 21% in the past year, from £11,777 to £14,207.
The findings, which are based on 714,000 quotes, indicate that sharp rises in house prices over the past 12 months have resulted in higher costs for services that charge their fees as percentages. The latest Land Registry data shows the average UK house price was around £292,000 in July, up from £253,000 a year earlier.
Reallymoving found that the average amount spent on legal fees (often called conveyancing) rose by 21%, while estate agent fees increased by 15%. Meanwhile, the cost of removals increased by 8%, but the amount spent on house surveys fell slightly.
The table below shows the average cost of moving house in England.
| Home mover costs | |
|---|---|
| Stamp duty | £6,500 |
| Estate agent | £4,544 |
| Conveyancing | £2,003 |
| House survey | £456 |
| Removals | £649 |
| Energy performance certificate (EPC) | £55 |
| Total | £14,207 |
Will the recent stamp duty changes affect the cost of moving?
These figures were calculated before the recent changes to stamp duty. This tax is traditionally one of the highest costs faced by home movers - Reallymoving's data shows that movers pay an average of £6,500.
In England and Northern Ireland, the stamp duty threshold has now been increased from £125,000 to £250,000. In Wales, it has risen from £180,000 to £225,000.
The changes mean some buyers in England and Northern Ireland can save up to £2,500 in stamp duty when buying a home. Those in Wales can save up to £1,575.
- Find out more: stamp duty calculator
The cost of buying your first home
Buying your first home is considerably cheaper than progressing up the property ladder. That's because first-time buyers in England and Northern Ireland don't pay stamp duty on the first £425,000 - a figure significantly higher than the £250,000 threshold for existing homeowners.
In addition, if you're not selling a home, you won't need to pay estate agent fees. This means that most first-time buyers will be able to avoid the two biggest costs of moving.
Reallymoving's data found that the average cost of getting on to the property ladder is now nearly £2,200, with legal fees making up the bulk of the bill. Overall, this is a 6% increase on last year's figure of £2,082.
| First-time buyer costs | |
|---|---|
| Stamp duty | £0 |
| Estate agent | £0 |
| Conveyancing | £1,342 |
| House survey | £456 |
| Removals | £400 |
| Energy performance certificate (EPC) | £0 |
| Total |
£2,198
|
How to save on the costs of moving home
There's not a great deal you can do about your stamp duty bill, but there are ways you can cut the other costs of moving home.
Estate agent fees will be your biggest outlay. Reallymoving uses an average of 1.42% of the sale price - but it's possible to get a cheaper rate.
Get quotes from several agents, and don't be afraid to haggle over the fee or overall deal. You can also use our partner comparison site GetAgent to compare estate agents' performance and fees in your area.
Shopping around is also important when it comes to legal costs, house surveys and removals. Conveyancing fees vary significantly depending on the cost and location of the property, and fee structures also differ. Some firms charge a flat fee, while others charge a percentage of the property's value.
You might find that the estate agent selling the property recommends specific firms to you, but be aware that they will usually be receiving an incentive for this, and you might be able to get the service cheaper elsewhere.
- Find out more: the cost of buying a house
What's happening to house prices?
As we mentioned earlier, house prices have risen significantly in the past year, but this could be set to change.
A combination of higher living costs and rising mortgage rates is likely to result in house price growth stagnating or even falling.
The estate agent Knight Frank recently became the first major provider to downgrade its forecasts in light of ongoing economic uncertainty. It predicts prices will fall by 10% over the next two years.
undefinedsource https://www.which.co.uk/news/article/cost-of-moving-house-rises-to-14000-how-to-cut-your-bill-a9h6w2s6dek5