The cost of moving house has risen to its highest rate in seven years, reaching heights of £7,356. Research conducted by reallymoving.com found that agency fees make up the vast majority of the costs, though it is apparently the price of property that’s driving up the fees, rather than increasing commission.
At an average of £1.2%, Estate Agents’ fees are proportionally lower than ever – but in absolute terms higher than ever due to a 28% increase in average house price.
On the average price of £225,956, the fees of 1.2% mean a cost to the buyer of £3,254. This represents 44% of the total moving cost, according to the research. In comparison, Stamp Duty on the average property is at £2,019.
Since 2007, the total cost of moving rose by 10%, from £6,685 to £7,356. In the same period of time, the median house price rose 25%.
There is also a noticeable north-south divide between moving costs. Costs in the southern counties exceed the national average, while in the north they lie below the median – the lowest being in Northern Ireland, the north east, and Scotland. In London, moving house costs an average of £23,913 – over three times more than the national average.
“Increases in fees for services and, in particular, for Stamp Duty has seen total cost of moving rise to the point where a single move costs nearly a third of the median annual salary”, said reallymoving.com’s Chief Executive, Rob Houghton.
“While there is no simple fix, there are a number of measures that consumers can take to manage the condition. Buyers can reduce the cost by shopping around, using well-priced and well-reviewed conveyancers, surveyors, removers and Estate Agents.”