Cost of moving home adds up over a lifetime
Homeowners in the South East are forking almost twice the national average cost to move home, with significantly higher fees for estate agent fees and stamp duty, according to research from reallymoving.com, a provider of online quotes from home movers which has launched a new Moving Cost Calculator service..
While the average person in the UK spends £8,264 every time they buy and sell a property, South East’s homeowners stump up £15,681 each time they move due to higher stamp duty as a result of higher property value.
Considering people in the UK buy four properties on average during the course of their lives, this equates to a total cost of £57,558 for South East residents over a lifetime compared to just £28,952 for people in the wider UK.
These homeowners can take some comfort from the fact that the costs are in many cases offset by consistently higher annual house price rises.
The greatest cost facing the typical South Eastern home mover, based on an average regional property value of £287,000, is estate agent fees, costing £5,166, followed by Stamp Duty Tax, costing £8,610. A further £785 is spent on conveyancing for the sale and purchase, £395 on a Homebuyer’s Report survey and £50 on an Energy Performance Certificate (EPC).
The total cost of a home move for people in the South East is equivalent to 57 per cent of average annual earnings, with most buyers falling within the higher three per cent stamp duty bracket.
Total moving costs for first time buyers wherever they live are substantially lower at £3,700, since they are not required to pay for estate agency fees, conveyancing on a sale or an EPC. They may also save considerably on removals having a lesser volume of possessions to move.
Reallymoving.com director Rosemary Rogers said: “Taking a chunk of equity out of your sale to cover the costs of a move is no longer a viable option for many sellers who need to keep hold of their existing equity in order to secure the best possible mortgage rate on their new home. As a result, buyers are more prepared to negotiate hard with estate agents over fees and shop around for the best conveyancing and removals quotes to keep costs as low as possible.
“Our Moving Cost Calculator shows that contrary to popular belief, Stamp Duty is only the most expensive moving cost in London and the South East. For the rest of the UK, estate agent fees are 80% higher than Stamp Duty.”
To calculate the cost of a home move, reallymoving’s new Moving Cost Calculator adds together estimated costs for conveyancing, removals, estate agency fees, Stamp Duty Tax, survey and EPC to give a total cost of moving.