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Moving costs up 6% in one year to hit £11,500

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  • 14/09/2017
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Moving costs up 6% in one year to hit £11,500
The average cost of moving home in the UK has increased by £628 over the past year to £11,624, according to research by Lloyds Bank. 

The rise of 6% (from £10,996), is mainly due to rising house prices, the bank said. These have pushed up estate agency fees, Stamp Duty and conveyancing fees.

Over half of the increase in average moving costs in 2017 has been due to Stamp Duty costs, which have risen by £393 (16%) to £2,897.  Estate agency fees have risen by £1,673 (3%) to £5,571 and legal costs are up by £39 (3%) to an average of £1,290.

However, there are significant regional differences across UK, with moving costs in the South West up 21% in the last year and the average moving cost in London totalling £32,092.

Unsurprisingly, London has seen the highest rise in the cost of moving over the last decade, with a £10,225 (47%) increase. This equates to a substantially higher proportion of annual gross earnings than nationally: 73% against 34%.

Meanwhile, costs have fallen in the North East (-8%), Scotland (-8%) and Yorkshire and the Humber (-1%). This largely reflects property price differences in these areas.

 

Considerable challenge

Andrew Mason, mortgages product director at Lloyds Bank, said: “The cost involved when moving home has continued to rise over the past year, making it even more difficult.

“Those looking to move in London are facing a considerable challenge with the cost involved being nearly three times the national average. The combination of both higher property prices and the rapid increase in those prices in recent years results in significantly higher moving costs.”

The total cost of moving in the UK has increased by £2,029 (21%) in the past ten years from £9,595 in 2007 to £11,624 today. This is slightly greater than the percentage growth in average house prices over the decade (16%) and average gross annual earnings (17%).

As a result, the total cost of moving has risen to 34% as a percentage of gross annual earnings.

London has seen the highest rise in the cost of moving over the last decade, with a £10,255 (47%) increase from £21,837 to £32,092.

However, moving costs in Northern Ireland have fallen by £5,382 (-47%) from £11,513 in 2007 to £6,131 in 2017 due to dramatic decline in house prices. Moving costs in the North East (-17%), Scotland (-12%) and Wales (-5%) are also lower than a decade ago.

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