The average cost of moving house has gone over £10,000 for the first time, according to new research, with first-time buyers taking longer to save up before joining the property ladder.
Compare My Move have calculated that it now costs, on average, £10,047 for a home owner to move. That’s a rise of £500 on the previous year, but FTBs have to find an average of £1,761, which takes an extra four months of saving.
The research factors in stamp duty, conveyancing fees, estate agent fees, the cost of an EPC certificate and removal firm costs. Stamp duty is a hugely significant element, but there are regional variations plus from 2018, FTBs did not have to pay this tax if their property was worth £300,000 or under.
Stamp duty down in Wales
In fact, home movers in Wales saw a handy reduction in stamp duty last year due to the introduction of the Land Transaction Tax in the Principality. This means that the average mover in Wales paid only £236 on average in duty, around £1,000 less than under the previous system.
But across the UK as a whole, stamp duty takes up around 35% of the cost of a house move. Where house prices are highest, in London and the south-east of England, the research shows that figure rising to 60% of a £28,000 moving bill in the capital and 52% of £17,000 in the surrounding region.
In the north-east, by complete contrast, stamp duty accounts for just 8% of an average moving cost of just over £5,000. The figures, compiled from ONS data, show the average cost of a property for FTBs in the region is £110,000, whereas in London that statistic is £414,000.
You can see how much it costs to move around the country via Compare My Move’s moving house calculator.
‘Don’t get caught out’
“It’s vital that first time buyers are fully aware of these extra costs,” says Compare My Move co-founder Dave Sayce.
“With many young renters taking years to save for a deposit on their first home, these extra costs are a nasty surprise if not budgeted in. It’ll take the average millennial four months of saving to cover the £1.7k of moving costs, so it pays to be fully aware ahead of time.
“Our recent research shows that unpopular moving days tend to be the cheapest for removal costs: moving on a Sunday could save you 21% and a Tuesday 14% off the overall average.”
Stamp duty for FTBs of shared ownership properties with a ceiling of £500,000 was abolished in the 2018 Budget, while the end of the tax for properties under £300,000 saved buyers nearly £1,400 in 2018 according to Compare My Move’s data.
