Lloyds – Cost of moving home now over £12k
The average cost of moving home has crept past £12,000 for the first time, according to Lloyds Bank, reaching a total of £12,110.
This 4 per cent annual growth – last year the cost of moving home was £11,624 – outpaces the annual growth in average earnings, which is 2.9 per cent, and means that the average moving cost takes up a third of gross annual earnings.
Lloyds points the finger at stamp duty costs, which grew 13 per cent over the year to £3,262, and a 3 per cent increase in estate agency fees, which now set the average home mover back £5,729.
As many housing market reports are showing, regional differences are stark. London tops the table in terms of pure costs, with home movers having to raise £33,741, 5 per cent more than last year, whereas in Northern Ireland the average amount required to change properties is £6,156 – broadly flat on an annual basis.
In terms of price growth, annually the West Midlands comes first, where a change from £10,044 in 2017 to £10,893 this year equates to 8 per cent growth, and Wales comes last, where prices have decreased from £8,008 to £6,955 – meaning that home movers have to find 13 per cent less than they did a year earlier.
The data also shows growth since 2008, which describes the cost of moving house in the South East increasing by 92 per cent (from £11,589 to £22,200) and in Northern Ireland going down by 31 per cent (from £8,882 to the aforementioned £6,156). In Wales the ten year number has gone down 15 per cent – £8,142 to £6,955. The latter two regions are the only places in the UK where prices have gone down since 2008.
Lloyds Bank mortgages director Andrew Mason says: “The positive growth seen in house prices will increase stamp duty and also provide equity to help pay these fees, but it’s important to consider the full costs involved when going through the home moving process and [that home movers] make sure all bases are covered to avoid any unexpected shocks.”
Source: Mortgage Strategy