Home Moving Costs Surge 75% in a Decade, Driven by Stamp Duty
The average cost for buyers to move home in England has increased by 75% over the last decade, largely due to rising stamp duty and estate agent fees.
Buyers in England now face an average cost of £17,413 to move home, an increase of 75% compared to a decade ago, even after accounting for inflation. Stamp duty and estate agent fees represent the largest components of this cost. According to a comparison of over 20,400 home moving quotes by Really Moving, stamp duty alone accounts for approximately £9,500 of the total.
Despite a slight decrease of £418 in the overall cost of moving since last year, attributed to falling property prices which have lowered stamp duty and estate agent bills, the long-term trend shows a significant rise. The median purchase price has dropped from £395,000 to £390,000, offering some relief to buyers.
Other expenses include £4,473 for estate agency fees, £624 for removal services (down from £709 last year), and costs for conveyancing, surveys, and Energy Performance Certificates, which sellers typically provide.
The escalating costs are reportedly deterring people from moving, even when their current homes no longer meet their needs. Rob Houghton, founder of Really Moving, stated that the increased cost of moving acts as a significant barrier to mobility and economic growth, hindering relocations for new jobs, preventing families from moving to larger homes, and making downsizing less appealing.
Regional disparities in moving costs are substantial, with London exhibiting the highest expenses at £32,017, primarily due to elevated property prices that drive up stamp duty and agent fees. The South East follows with costs of £22,765, while the East of England and South West stand at £19,302 and £17,292 respectively. Conversely, the North East has the lowest moving costs at £8,806.
For first-time buyers, the cost of moving is considerably lower, averaging £2,293. This is largely because they typically only incur the costs associated with purchasing a home, not selling one. Their average purchase price is around £250,000, often exempting them from significant stamp duty. First-time buyers generally pay stamp duty on the portion of a home's value above £300,000, a higher threshold than for other buyers. Even for this group, London presents a challenge, with average stamp duty costs of £5,250 for first-time buyers, pushing their upfront expenses to nearly £8,000 before considering a deposit.