No good news here I’m afraid, as it seems moving house is more expensive than 10 years ago; about £9,000 more expensive.
The majority of us are having to dig deep into our pockets to get by, and if the time arises where we need to move home, times are only going to get tougher. The cost of moving equates to 27 of the average UK gross full-time wage, an increase of 22 since 2001. This will only pile on pressure for couples wanting to settle down and have a children, and make times harder for families.
For somebody looking to move into a £250,000 house, be prepared for the 3 stamp duty, which is an instant hit of at least £7,500, a hefty amount to pay when you are buying a house. According to Lloyds TSB, this means that people moving in London will pay an average of £19,500, while the South East pays an average of £16,500 to move home.
Of this cost, the biggest proportion of the money goes to Estate Agents, with them earning an average of 38 of the total moving costs; that’s an average of £3,400! Stamp duty equates to 21 of the costs.
House prices have increased 64 in the last 10 years, 24 more than the official rate of inflation from over the last decade. All of this plus the fact that it is now even harder to get a mortgage, with first-time buyers having to stump up about 10 of the property’s price for the deposit. Times are not easy in the housing market.
However, it isn’t all doom and gloom, as first-time buyers tend to have less moving costs. It is an average of 63 cheaper as there are no estate agent fees as you are not selling a house, only buying.
If you are a growing family and need more space, have you considered a conservatory or converting your garage into a room? They’re a great way to free up some space in your home, giving you the opportunity to add a bedroom or just have more space to relax and enjoy your garden. It can also increase the price of your property, meaning the initial cost will make up for itself should you want to move. Not only that, but by looking at the stats above, it is probably cheaper to improve rather than move.