The cost of moving home tops £12K for the first time
The average cost of moving home in the UK has shot up by £486 in the past year alone to reach £12,110, according to Lloyds Bank.
This is a 4% rise in costs compared to annual growth in average earnings of just 2.9% and inflation of 2.42% (Consumer Prices Index).
Why the rise?
Increasing house prices (up 3% in 2018 to £265,238) have been the main factor behind the increase in moving costs, pushing up estate agency fees and Stamp Duty which are typically linked to the purchase price.
More than half the increase in moving costs in 2018 can be attributed to Stamp Duty costs, which have risen by £365 (13%) to £3,262 in the last year alone. Estate agency fees are up by £158 to £5,729.
Andrew Mason, mortgages director at Lloyds Bank, said: “The positive growth seen in house prices will increase Stamp Duty and also provide equity to help pay these fees, but it’s important to consider the full costs involved when going through the home moving process. Then make sure all bases are covered to avoid any unexpected shocks at the time.”
The West Midlands saw the biggest percentage increase of any region over the last year, rising by 8% (£849) to £10,893.
At the other end of the spectrum, costs fell most sharply in Wales, by 13% (£1,053) to £6,955.
London is the most expensive location to move house, with an average cost of £33,741, nearly three times the UK average, driven by the cost of Stamp Duty.
Northern Ireland has the lowest moving costs, at just £6,156, closely followed by Scotland at £6,171.