How to make the mortgage market work for you
22 Feb 2012
Fri, 27 Jan 2012
By Charlotte Beugge
The cost of moving house is now close to £9,000 for a typical British family - a rise of 69% on the figure from 10 years ago, according to Lloyds TSB. Today it costs typically £8,922 to move home compared with £5,290 in 2001.
But over the same period, house prices have risen by just 64%. House moving costs comprise stamp duty, mortgage arrangement fees, estate agency fees, surveyors' fees, conveyancing and removal costs.
Lloyds says that the cost of moving house is now at its highest level since 2007 when the housing market peaked. As a percentage of average UK earnings, these costs account for 27% compared with 22% in 2001.
Estate agency fees rose the most, up by typically £1,318 over the ten years and account for 38% of the costs of moving. Rising mortgage fees (up £770) and stamp duty (up £732) contributed to the increased bill for home movers.
First-time buyers' moving costs are 63% lower than home movers because they don't have the expense of estate agency fees and they pay less - if any - stamp duty. A typical first-time buyer's moving costs are around £3,334.
However, when the stamp duty holiday for first-time buyers ends in March the cost for first timers will rise considerably. Currently, they don't pay stamp duty on purchases of up to £250,000 but that limit will revert to £125,000 on March 21.
