Mortgage rates may have soared in the last year but the cost of moving house has taken a tumble, falling by 12%.
Lower stamp duty bills and cheaper survey prices have helped to drive the average costs around buying a home, not including the mortgage, down by £1,982 in England, according to the annual report by reallymoving.com.
The comparison site for home movers said buying and selling a property in England now costs £14,458 which compared to £16,440 in 2022.
Despite the drop in price, the overall cost for those buying and selling a property at the same time will still swallow up 45% of the average annual salary in Great Britain according to earnings data from the Office for National Statistics.
What are the costs involved in buy a home?
When you purchase a home the mortgage is of course the main financial outlay. But the additional costs such as stamp duty, conveyancing fees, surveys, removals and estate agency commission must also be factored in.
In the last year, said reallymoving, there were below-inflation increases in the cost of conveyancing, estate agency fees and removals.
However, a big fall in the stamp duty threshold, announced last Autumn, has helped cut the moving costs significantly.
Survey and Stamp Duty costs falling
Indeed, movers who are buying and selling at the same time now pay no tax on the first £250,000 of their purchase price, compared to £125,000 previously. Based on the average property purchase price in England, Stamp Duty bills have fallen 26% from £8,750 to £6,500, reallymoving revealed.
Meanwhile a Level 2 Survey or Homebuyer Report has fallen in price by 6%, according the comparison site, to £480. Surveys offer homeowners the chance to check for any potential problems or flaws in their property before purchasing and is not the same as a valuation.
Rising costs of buying a home
Of course, not everything has fallen in price. As fewer homes are being bought and sold amid tough economic conditions, the homeowners have seen the cost of conveyancing rise by 2% annually to £2,038. This includes expenses such as Land Registry fees.
What’s more, the cost of removals has risen by 8% to £699, said reallymoving.com, based on a move of less than 30 miles.
Estate agent fees remained at 1.42% on average, but have risen by 5% to £4,686 because annually the average sale price has increased.
Scotland: The only UK region to see moving costs rise
In Scotland, Land and Buildings Transaction Tax (where LBTT) thresholds remained unchanged therefore the overall cost of moving increased by 4% in the last year to £7,903, said reallymoving.com. This was due to a 2% rise in the average purchase price prompting an increase in typical tax bills along with an increase in the cost of a property survey – which in Scotland is paid for by the seller.
Rob Houghton, CEO of reallymoving, said: “Amid high inflation, a significant annual fall in the upfront costs required to fund a home move will be welcome news.
“But the cost-of-living crisis and higher mortgage rates has made it harder to save and homeowners still need to find almost £14,500 in cash, which is extremely challenging.
“Always shop around to secure the best deals for conveyancing, surveying and removals, looking closely at customer reviews as well as price, to help ensure your transaction progresses as quickly and smoothly as possible.”
Moving costs at a glance (Source: reallymoving.com)
| Homeowner Buying & selling | 2023 | 2022 | % Change |
| Stamp Duty | £6,500 | £8,750 | -26% |
| Estate Agent fee | £4,686 | £4,473 | +5% |
| Conveyancing | £2,038 | £2,003 | +2% |
| Survey | £480 | £510 | -6% |
| Removals | £699 | £649 | +8% |
| EPC | £55 | £55 | 0% |
| Total | £14,458 | £16,440 | -12%
|
| First Time Buyer
Buying only |
2023 | 2022 | % Change |
| Stamp Duty | £0 | £0 | 0% |
| Estate Agent fee | NA | NA | NA |
| Conveyancing | £1,314 | £1,342 | -2% |
| Survey | £420 | £450 | -7% |
| Removals | £420 | £400 | +5% |
| EPC | NA | NA | NA |
| Total | £2,154 | £2,192 | -2% |
