Cost of moving home falls
It has become cheaper to move house
Wednesday, 02, May 2007 09:14
Despite rising house prices it has become cheaper to move house.
That is according to new research from Woolwich, which shows the average cost of moving home for sellers has fallen ten per cent from £5,181 to £4,666 in the last year.
However, the introduction of home information packs (Hips) from June 1st will wipe out the savings savvy sellers have made when moving house.
"The market definitely favours sellers at the moment and the lack of property on the market is helping them negotiate deals with estate agents, and to a lesser degree solicitors, as agents are desperately trying to find enough good quality property to satisfy the increasing demand," said Andy Gray, head of mortgages for the Woolwich.
"We also expect the pressure to continue on fees as long as it stays a sellers' market. Especially as the introduction of home information packs in the summer will only add to the cost of selling a house."
Hips will contain an energy assessment, searches and legal documents and optional home condition reports in an attempt to cut down on the number of property sales that fall through by giving the buyer more information up front.
They are required and paid for by anyone putting their home on the market, with industry estimates putting the cost at around £400.
However, while this will increase the cost for sellers, it is nothing to the increased costs buyers face thanks to stamp duty.
On average stamp duty adds £9,750 to buyers' costs as house prices rise and more and more homes fall under the three and four per cent stamp duty brackets.
This has seen the cost of buying a home rise despite a fall in solicitors' fees and the Land Charge costs coming under Hips from June 1st.
"Sellers not only have the advantage of there being more demand for property than is available, thus driving up asking prices, they are also squeezing the professionals for every penny they can to cut the costs of moving," Mr Gray said.
"In contrast, buyers are having to pay more or less the asking price to secure the property they want as well as forking out for stamp duty and other costs. Basically if you are seller moving into rented accommodation or abroad, it's about as good as its gets at the moment."