Cost of moving house soars to almost £9k in 2011

Saturday, 28 January 2012 10:57

New research carried out by Lloyds TSB has revealed that the cost of moving house has increased significantly over the past decade.

The company found that expenses such as estate agency fees, surveyors' fees, conveyancing and mortgage arrangements mean people moving from one property to another had to spend an average of £8,922 in 2011, up from £5,290 in 2001.

Mortgage arrangement fees have increased by an amazing 252 per cent and now cost £1,076 on average. Meanwhile, the average estate agency costs are up by 64 per cent in the past ten years, from £2,059 to £3,377.

Stamp duty costs have also gone up by 64 per cent from 2001 and now cost £1,876. Conveyancing fees have also risen by 64 per cent to an average of £938. Surveyors fees have also risen and now typically costs £545. Finally house removal prices have risen by 38 per cent to an average of £1,110.

The South East has been worse hit, with costs more than doubling (132%).

London recorded the second-biggest increase (127%), followed by the North East (91%).

Those living in Northern Ireland have seen the smallest rise in home moving costs (24%).

At 69 per cent, this rise is greater than the 64 per cent increase in house prices seen during the same period and represents 27 per cent of UK gross full-time earnings for movers.

Lloyds TSB looked at data from Halifax, Moneyfacts and the Office for National Statistics and did not include the cost of decorating, local searches and land registration fees.

First-time buyers were found to be in a better position, as they would not have to pay things like estate agent fees to list an existing property.

Indeed, moving costs for this demographic stood at £3,334 in 2011.

Half of the survey's respondents said they would use savings to cover the expense of moving, while 16 per cent expected to use their credit cards.

Lloyds TSB housing economist Suren Thiru said: "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."

In November 2011, Zoopla found that two out of five sellers have been forced to slash thousands of pounds off their asking prices, meaning they may be in an even worse position to cover the cost of moving.

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