Cost of moving home plummets by almost 40%
The cost of moving home in the UK has fallen by 39% from £10,911 – before the stamp duty holiday came into effect on 8th July 2020 – to £6,669 afterwards.
The ‘Cost of Moving’ research conducted by reallymoving.com analysed data from 239,000 quotes in the last year. This revealed that while legal and estate agent fees, survey and removal costs have all risen, now is the cheapest time to move home in decades as a direct result of the temporary suspension of stamp duty charges on purchases up to the value of £500,000.
London and South East movers save the most
Those moving within London and the South East are currently enjoying the largest financial incentive to ensure they move before the stamp duty holiday ends on 31 March next year.
The cost of a move in London has more than halved from £25,255 before the stamp duty holiday to £12,061 after – a saving of 52%. Significant savings are also being enjoyed by movers in the South East (-53%),
First time buyers costs rise
While those buying and selling a home have seen costs plummet, UK first time buyers (FTBs) have seen the cost of buying their first property rise by 8% on average.
FTBs are less impacted by the stamp duty holiday as they were already exempt from paying the tax on purchases up to £300,000. This group has instead been impacted by an increase in all associated moving costs such as legal and estate agent fees, surveys and removals, partly due to a sharp rise in property prices.
First Time Buyers in London get a particularly raw deal, paying nearly a quarter (24%) more than the UK average in upfront moving costs at £2,218.
Cost of moving as a proportion of income
Since the stamp duty holiday, home movers (both buying and selling) are spending 22% of their average income, based on the median UK salary of £30,4201, on financing a move compared to more than a third (33%) previously.
With cash to cover up-front costs being one of the biggest barriers to moving home, this increased affordability has been a significant incentive for people to move quickly, creating a spike in demand from buyers and boosting liquidity.