Moving costs have soared since 2001
The latest piece of research from Lloyds TSB has focused on the cost of moving house, and how that cost has shot up over the past decade.
Indeed the huge boom in house prices over the past ten years has actually been outstripped by the rising cost of relocating.
That’s in terms of buying and selling a property – so it assumes you’re not just buying and taking your first step on the property ladder (or indeed the property snake as it has become in more recent times).
Back in 2001, the average cost of selling up and buying a new place was £3,630. In 2011, that cost has risen by 69% to £8,920, beating the 64% rise in house prices through the boom.
Lloyds TSB notes that the cost of moving house is now at its highest level since the peak of the housing boom in mid-2007.
The home moving costs in question include stamp duty, mortgage arrangement fees, estate agent’s and survey fees, as well as the solicitor’s bill and removal costs.
The total of almost £9,000 for moving is equivalent to 27% of the average UK gross full-time earnings, an increase of 5% since 2001.
The biggest expense is the estate agent’s fee – which makes up 38% of the cost of relocating – and if you’re wondering what the average estate agent commission is across the country, Lloyds TSB estimates it at 1.8%.
Stephen Noakes, director of mortgages at Lloyds TSB, commented: “With the cost of moving at its highest level since 2007, consumers struggling to cover the costs should look to make savings wherever they can.”
“With mortgage fees making up around 12% of the overall outlay, considerable savings could be made by looking for a fee free mortgage option.”
Lloyds compiled its research using figures drawn from a number of sources, namely the Halifax, Moneyfacts and the Office for National Statistics (ONS).
Category: All Financial News, Property News
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