Conveyancing fees have risen slightly over the past 12 months, but continue to track well below inflation, estate agency and removals fees as a new report suggests the cost of moving home has fallen by over 10% in the last 12 months.
Analysis of 350,000 quotes for home moving services has revealed that the cost of moving home has decreased 12% over the past 12 months from £16,440 in 2022 to £14,458 in 2023 according to the latest Cost of Moving research from comparison website reallymoving.com.
The decrease can be in part attributed to the increase in SDLT thresholds where home movers no longer pay tax on the first 250,000 of their purchase price, compared to £125,000 in the previous report. Based on the median property purchase price in England, Stamp Duty bills have fallen 26% from £8,750 to £6,500.
The report identifies that fees have risen just 2% over the past 12 months to £2,038 including Disbursements and Expenses (e.g., Land Registry fees) , a real terms reduction given the rate of inflation; and below estate agent fees, which despite remaining at 1.42% of property price on average, have been inflated 5% by the sizeable increases in prices, to £4,686. Removals have also increased by 8% to £699, based on a move of less than 30 miles and the cost of a Level 2 Survey (Homebuyer Report) has become more competitive, falling by 6% to £480.
Despite lower overall costs for those buying and selling a property at the same time, moving home still swallows up 45% of the average annual salary in Great Britain according to earnings data from the ONS.
First Time Buyers across England have seen the cost of moving fall by 2% to £2,154, following a reduction in conveyancing and survey charges. But First Time Buyers in London have benefited from the most significant savings, with overall moving costs plummeting by a substantial 70% from £8,318 in 2022 to £2,512, thanks to the median purchase price of £420,000 now falling into the revised nil tax Stamp Duty band which the Chancellor has pledged will remain in place until the end of March 2025.
Commenting on the report Rob Houghton, CEO of reallymoving said:
“Amid high inflation, a significant annual fall in the upfront costs required to fund a home move will be welcome news. But the cost of living crisis and higher mortgage rates has made it harder to save and homeowners still need to find almost £14,500 in cash, which is extremely challenging.
“Transactions are typically taking much longer to complete than a year ago which can put home moves at a higher risk of falling through, so it’s important to ensure you appoint a reliable conveyancing solicitor that scores highly for customer satisfaction as well as value for money.”
Moving costs exceed the national average in London, the South East, South West and East of England, while in the every other region of England (North East, North West, East and West Midlands, Yorkshire & Humber) moving costs are below the national average.
Being the only region of the country where zero Stamp Duty is due, based on the median purchase price of £249,950, the North East is the cheapest place to buy and sell a property, costing £5,539 – just over one fifth of the sum being paid by movers in London. Meanwhile, homebuyers in the East and West Midlands, North West and Yorkshire & Humber have all seen their tax bills fall by around 40% since the thresholds were revised.
In Scotland, where LBTT (Land and Buildings Transaction Tax) thresholds remained unchanged, the overall cost of moving has risen by 4% in the last year to £7,903, due to a 2% rise in the median purchase price prompting an increase in average tax bills along with an increase in the cost of a property survey – which in Scotland is paid for by the seller. First Time Buyers in Scotland are paying 3% more to move home than they did a year ago (£1,654).
