On average homeowners buying and selling a home were forking out £10,911 to cover the costs involved in the property transaction process before the government put the relief on the property tax in place in July.
Yet, according to home moving service, Reallymoving, the typical cost has now fallen to £6,669. It means the average mover could save more than £4,000.
This increase in affordability has, said Reallymoving, created a significant incentive for people to move quickly, boosting the number of potential buyers and leading to ‘unprecedented levels of demand’ across the market.
First-time buyer cost increase
But while there were clear savings to be had by buying a house during the stamp duty holiday, the discount was not as favourable for everyone.
Indeed, Reallymoving’s annual Cost of Moving Report found first-time buyers had actually seen their moving costs rise by 8% on average.
This is because many first-time buyers were already exempt from paying the tax on purchases up to £300,000.
Instead, this group has been impacted by an increase in associated moving costs such as legal fees (11%), surveys (5%) and removals (4%) – this is partly due to a sharp rise in property prices.
What’s more, according to Reallymoving, first-time buyers in London get a particularly raw deal, paying nearly a quarter (24%) more than the UK average in upfront moving costs at £2,218.
Rob Houghton, CEO of Reallymoving, said: “The cost of moving has been steadily climbing for many years but the chancellor’s stamp duty giveaway has made now the cheapest time to move in decades for those buying and selling a property.
“There’s little let up for first-time buyers, who are facing increased house prices and greater moving costs than a few months ago, making it even harder to save enough for a deposit and to cover the up-front costs of buying a home.”
Yet despite this, the survey revealed, there was still demand from first-time buyers which Houghton suggested could be coming from shared ownership, Help to Buy and the Bank of Mum and Dad.
Change in the cost of moving home in the UK in 2020 (Source: Reallymoving)
| Repeat mover (buying and selling) | Before SDLT holiday | After SDLT holiday | % change | FTBs | Before SDLT holiday | After SDLT holiday | %
Change |
|
| Stamp Duty | £5,000 | £0 | -100% | Stamp Duty | £0 | £0 | 0% | |
| Estate Agent fees | £3,455 | £3,936 | +14% | Estate Agent fees | £0 | £0 | 0% | |
| Legal Fees | £1,465 | £1,682 | +15% | Legal Fees | £995 | £1,100 | +11% | |
| Survey | £408 | £450 | +10% | Survey | £375 | £395 | +5% | |
| Removals | £528 | £546 | +3% | Removals | £289 | £300 | +4% | |
| EPC | £55 | £55 | 0% | EPC | £0 | £0 | 0% |
Hougton added: “While it’s best to act quickly to take advantage of the stamp duty savings, buyers should also bear in mind that we’re probably seeing a temporary spike in house prices so for some it may be better to wait until the holiday ends when prices are widely expected to return to more normal levels.
“In an unpredictable market it’s more important than ever to compare ratings and customer reviews when searching for home move services, as well as price, to ensure that when you do decide to buy, your transaction progresses as smoothly as possible.”
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