"There’s little let up for first-time buyers, who are facing increased house prices and greater moving costs than a few months ago"
Moving costs have fallen from an average £10,911 before the stamp duty holiday came into effect on 8th July 2020 to £6,669 after, saving the average person buying and selling a home in the UK £4,242.
This is despite legal fees, estate agent fees, survey and removal costs all rising over the same period.
The largest expense for home movers who are both buying and selling is currently estate agent fees averaging £3,936 (+14% increase), followed by legal fees at £1,682 (+15%). The cost of a survey has risen by 10% to £450 and, although varying significantly depending on the distance of the move and the volume of possessions transported, removals charges have also increased by 3% to £546.
Those moving within London and the South East are currently enjoying the largest financial incentive to ensure they move before the stamp duty holiday ends on 31 March next year. The cost of a move in London has more than halved from £25,255 before the stamp duty holiday to £12,061 after - a saving of 52%. Significant savings are also being enjoyed by movers in the South East (-53%), East of England (-47%) and South West (-40%), while the smallest savings are being made in the North East (-17%), Northern Ireland (-20%) and Wales (-22%) where transaction taxes were already lower based on the median house price.
While those buying and selling a home have seen costs plummet, first-time buyers have seen the cost of buying their first property rise by 8% on average. Less impacted by the stamp duty holiday, this group have instead been impacted by an increase in associated moving costs such as legal fees (+11%), surveys (+5%) and removals (+4%), partly due to a sharp rise in property prices. 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.
CEO of reallymoving, Rob Houghton, 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. Despite this, levels of demand from first-time buyers remains reassuringly high, suggesting they’re still finding ways to buy including through Shared Ownership, Help to Buy and the Bank of Mum and Dad.
“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.”
