Housing crisis laid bare as cost of moving properties doubles | Personal Finance | Finance
Data has revealed that the cost of moving homes has seen a significant rise in the last decade, and with the stamp duty threshold changes, it is only due to become even more expensive.
The cost of moving homes in 2014 was around £6,534, including legal fees, removals, surveys, and stamp duty.
However, today, movers can be sure to spend just under £14,000 to move homes.
According to data from Reallymoving, first-time buyers spend, on average, £2,186 to move homes. The lower price comes from having no selling costs and not usually paying stamp duty.
When it comes to moving homes, there are different fees for buying and selling. Buyers must take on the cost of stamp duty and surveys, whereas selling comes with the estate agency fees.
The data by Reallymoving claims movers end up paying £13,978 upfront, and for movers in the capital, they pay an even higher amount – £30,048, to be precise, over double the national average.
The average property prices in London are higher, which surges the stamp duty and estate agent costs – based on a percentage of the sale price.
Wondering where the cheapest location to move homes is? The North East of England’s average move price is under 20% of Londoners moving cost. The total for those moving into the area comes at around £5,492.
As reported in the Mail, Rob Houghton, founder and chief executive of Reallymoving told This is Money: “Raising almost £14,000 to finance a home move is a major challenge for many people, especially with the cost of living so high, making it even harder to save.
“We’ve seen an increase in the proportion of first-time buyer activity in the last few weeks as people accelerate plans to move to take advantage of lower stamp duty bills before they rise next spring, but the window is still too tight for many, so it’s wise to budget for higher stamp duty costs just in case.”
The autumn budget was presented in October and included changes to the stamp duty. Chancellor Rachel Reeves announced that on 1 April 2025, the current £250,000 threshold on which stamp duty is payable will go back to £125,000.
Currently, the price at which stamp duty starts to be charged for first-time buyers is £425,000; however, next year, it will go down to £300,000.
Reallymoving said: “The proportion of first-time buyers paying stamp duty will more than double from 17 per cent currently to 39 per cent when the Government reinstates the £300,000 threshold on 1st April 2025.
‘This presents a significant additional upfront cost at a time when first-time buyers are already grappling with high house prices and mortgage rates – as well as extortionate rents which make it harder than ever to save a deposit.”
