Those who are already on the property ladder were paying 6% more in 2018 for the costs associated with buying and selling a home than they were in 2017, according to price comparison site reallymoving.com.
Most home movers must pay for stamp duty, estate agents fees, conveyancing, an energy performance certificate (EPC) and removal costs.
It means the total cost of buying and selling for the average homeowner has increased to a record high of £9,812, which is equal to one third of the median UK salary of £29,588, said reallymoving.com.
Stamp duty alone is now costing the average homeowner £4,500, having experienced an annual increase of 11%. Conveyancing costs, which is the price paid for the solicitor, have increased in this time from an average of £1,417 to £1,497. Surveying costs have also gone up slightly by 1%.
First-time buyers
In stark contrast, however, first-time buyers have experienced the opposite trend – with costs falling by almost a third in 2018 to an average of £1,809.
This is mainly because of the changes to Stamp Duty which mean first-time buyers purchasing properties up to £300,000 are exempt from the land tax. Those buying homes up to £500,000 only pay stamp duty on the amount over £300,000
Rob Houghton, CEO of reallymoving.com explained the cost of moving has soared despite the fact associated providers, such as estate agents and solicitors, have reined in price increases as they fight for business from the smaller numbers of movers.
He added: “It’s a different story for first-time buyers, however, who have benefited from a significant fall in upfront costs of buying their first home due to stamp duty changes.
“For those first-time buyers with a medium to long-term view, now could be a good time to buy with costs and mortgage rates low and plenty of sellers prepared to do deals.”
Loading ...