The costs involved in moving house have soared by 69% over the past decade, outpacing the rise in house prices, according to a new report from Lloyds TSB.
The cost of fees and taxes associated with moving home have risen by £3,632 since 2001 and hit an average of £8,922 in 2011. But homeowners moving in London are facing a far heftier bill of £19,544 due to higher home values.
In comparison, house prices have risen by 64% over the same period.
The price of moving is made up of estate agents fees, mortgage arrangement fees, stamp duty, conveyancing costs, home removal and surveyors fees.
The biggest rise has been in mortgage arrangement fees, which have soared by 252% since 2001 to £1,076 on average now, reflecting the changing structure of mortgage products.
But it is estate agency fees that still make up the bulk of moving costs sitting at an average of £3,377 - 38% of the total cost.
People living in the South East and London face much higher costs due to stamp duty. This is because stamp duty is calculated as a percentage of your home purchase value and property valuations are much higher in this part of the country. As a result, the estimated cost of moving in the South East is £16,637, and in London it's an astonishing £19,544.
In contrast, the cost of moving for first-time buyers has dropped by 63% over the decade to an average of £3,334. The cost is lower than for people further up the property ladder as first-time buyers typically don't pay estate agents' fees or stamp duty.
The stamp duty holiday (properties bought for under £250,000 don't incur the tax at present) means that the vast majority of first-time buyers did not pay stamp duty in 2011. When stamp duty returns for properties worth more than £125,000 in March moving costs of first-time buyers will significantly increase.
"With the costs associated with completing a home move in the UK rising substantially over the past decade, the task for those looking to move home has undoubtedly become more challenging," says Suren Thiru, housing economist at Lloyds TSB. "The significant rise in home moving costs is particularly concerning at a time when demand in the UK housing market is weak."
With mortgage lenders demanding larger deposit the increased cost of moving is putting a significant dampener on the housing market.
Cost of moving home by region, 2001-2011
|Estimated costs £s 2001||Estimated costs £s 2010||Estimated costs £s 2011||One year % change||10 year % change|
|Yorkshire and Humber||4,020||7,139||6,994||-2.0%||74%|