Not only have property prices been steadily climbing over the past decade, apart from the last couple of years, but the cost of moving home has increased by over 70% too. The cost of moving now stands at around £9,000, and has actually risen faster than property prices in the same time period.
Whereas in 2001, the cost of moving house was 22% of the average annual wage, in 2011 that figure had risen to over 27%, putting financial pressure on families at the very moment they need as much of their income available as possible. Those buying a house which costs more than a quarter of a million, which doesn’t buy you much in the property market these days, are hit even harder, with an automatic stamp duty payment of 3%, or at least £7,500, on a £250,000 home.
Financial experts are continuing to point out that the £250,000 trigger for 3% stamp duty is an unfair one; if this had risen at the same rate as inflation, only properties worth over £650,000 would incur the extra expense, while the current half a million pound threshold for 4% stamp duty would actually stand at £1.3 million.
According to a recent report by Lloyds TSB, moving house in the south-east of England will cost just over £16,000 more on top of the cost of the property, while those buying a new home in London can expect to pay almost £20,000 before they get their hands on the keys.
The report counted such standard costs as mortgage arrangement fees, estate agency fees, stamp duty, surveys, solicitors’ costs and removal costs. Despite the high-profile given to the cost of stamp duty in the UK, most home-buyers told Lloyds TSB that their biggest moving expense was the fee paid to the estate agent, which on average amounted to almost 40% of their total extra costs.
Related posts:
- Rics says people are renovating instead of moving Royal Institution of Charted Surveyors (Rics) research says that rather...
- Moving in Winter tips Moving in the winter can be a good option if...
- Rightmove says house prices still falling year on year Rightmove, the property website, has said that the average price...
- House rental prices continue to climb August marked the seventh month in a row that the...
Related posts brought to you by Yet Another Related Posts Plugin.