Mon, 17 Sep 07
The overall cost of moving house has more than tripled over the last ten years. It now stands at £9,486, up from £2,925 in 1996...
The most recent research by propertyfinder.com showed that on average, people looking to move home in the UK can currently expect to pay £450 in removal costs, £1,000 in lawyer fees, £3,027 in estate agent’s fees, and a massive £5,009 in stamp duty. Ten years ago, these figures stood at £376, £857, £1,257 and £543 respectively.
Warren Bright of Propertyfinder said: On top of rapid house price inflation, home sellers have to contend with the soaring costs of moving home. The largest factor is stamp duty, which now accounts for over half of moving costs on the average home and has risen almost tenfold in ten years!
Without doubt, the Chancellor has been the largest beneficiary of the booming housing market.
While the costs of moving home have risen by an annual average of 12.5%, inflation has averaged 1.5% per annum over the same period.
These higher costs effectively have to be borne by a homebuyer’s mortgage, adding just under £60 to the monthly cost of a borrower’s repayments, around £700 every year!
The extra costs are discouraging people from moving up the property ladder, said the report, and there is a resulting shortage of properties on the market, particularly at the bottom end. The website’s monthly confidence index suggests people currently expect house prices to rise by 6.4% over the next twelve months - and 31% of home seekers would account a rise primarily to the fact that there are too few properties coming up for sale.
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