"Stamp duty still presents a major cost, particularly for those living in London, South East and East of England, and continues to deter people from downsizing."
This is based on the value of a detached family home in England, which has an average price of £381,211, and buying a two bedroom apartment at an average price of £268,174.
The two highest downsizing costs are estate agency fees, which are typically 1.8% of the sale price, and stamp duty. In the case of downsizing from the family home, OwnerSellers says average agency fees would come to £8,234, including VAT at 20%, followed by stamp duty of £5,909.
Other expenses add £3,700 to the bill and cover conveyancing fees of buying and selling (£2,050), survey home buyer’s report (£600) and removals and packing (£1,050).
Predictably, England’s most expensive region for downsizing costs is London, where a family home is just under a million pounds at £994,931 and would attract agency fees of £21,491, while a flat at an average cost of £492,815 would attract stamp duty of £17,141. The total bill for downsizing would be £42,332.
The South East was the next most expensive region for downsizing with total costs similar to the national average of £17,248, followed by East of England at £14,273 and the South West at £12,865.
In the East and West Midlands, North West and North East, agency fees are by far the larger cost of downsizing compared to stamp duty, which is minimal, as flats are considerably below the value band of £250,001 above which the 5% stamp duty kicks in.
Rupert Cattell, CEO of OwnerSellers, said: “Extortionate estate agency fees and stamp duty, combine to make downsizing hideously expensive and this is even before you start adding in other key costs such as surveys, removal fees and, legal fees.
“Stamp duty still presents a major cost, particularly for those living in London, South East and East of England, and continues to deter people from downsizing. This is causing a bottleneck in the family homes market, preventing growing families from taking the next step up the property ladder and fuelling the imbalance in the market."
