Moving costs up more than prices in last decade

Friday, 27 January 2012 9:40 AM

The cost of moving home has risen faster than house prices over the last decade, according to new research from Lloyds TSB.

The bank says the average move now costs £8,922, an increase of 69 per cent since 2001. House prices rose by 64 per cent over the same period.

Moving now costs the equivalent of 27 per cent of average UK gross full-time earnings, up from 22 per cent in 2001.

All six components of the costs of moving increased over the decade with estate agency fees (up £1,318), mortgage fees (up £770) and stamp duty (up £732) the biggest contributors to the overall rise.

Estate agency fees were the biggest single cost (38 per cent of the total) followed by stamp duty (21 per cent). However, mortgage fees have trebled over the last 10 years and now account for 12 per cent of the total.

Moving costs for first-time buyers were much lower than for home movers at £3,334 since they do not typically pay estate agency fees or stamp duty.

The cost of moving home rose by 1.5 per cent over the last 12 months but there were considerable regional variations with costs rising 6.3 per cent in London but falling 27 per cent in Northern Ireland as house prices fell significantly.

Suren Thiru, housing economist at Lloyds TSB, said: "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.

"The significant rise in home moving costs is particularly concerning at a time when demand in the UK housing market is weak."

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