Recent research by Lloyds Bank has revealed that the cost of moving home has risen to £10,996 in the UK, with costs in the capital soaring even higher at £31,416.
During the last year, the costs associated with moving to a new home have increased by £870. The main reason for the increase is estate agents’ fees, which have risen by £402 this year and are therefore responsible for nearly half of the increase in costs.
Other factors that make up the costs of moving home include stamp duty, which is an average of £2,504, and legal fees of £1,251. Surveyors’ fees average at £665, while the cost of moving furniture and possessions to the new property are around £1,111. An Energy Performance Certificate must also be purchased, which costs around £60.
The reason that moving costs have soared can be attributed to the rising house prices. This impacts on stamp duty costs, conveyancing and estate agents’ fees. During the year ending July 2016, house prices rose by 8.3%, which could account for the 9% increase in moving costs. Costs are higher in London, where the largest increase in moving costs stands at 20%. The lowest increases are in the North West, where moving home will cost an extra 1% this year.
As the cost of moving home continues to rise, more people are likely to remain in their current property, where they may decide to extend their home. CeMAP qualified mortgage advisers have experience of this, and are able to help you decide whether buying a new home is an affordable solution.