Moving costs has fallen by 40% due to Stamp duty holidays
Since the government announced stamp duty holiday on 8 July 2020, the cost of relocation has dropped 39% according to a study by realmoving.
Relocation costs fell from £10,911 before July to £6,669 thereafter, saving the average person buying and selling a UK home £4,242.
At the same time, legal costs, real estate agent fees, inspection and disposal costs increased during the same period.
The biggest costs are currently the real estate agent fees (~£ 3,936, up 14%), and then legal fees of (£1,682, + 15%). The cost of the survey has increased by 10% to £450, and while these significantly vary depending on the distance of the move and the volume of possessions transported, removals charges have also grown 3% to £546.
People who move to London and the Southeast are currently enjoying the biggest financial incitement to make sure they move before stamp duty ends next March 31st. The cost of moving to London has down more than by half - from £25,255 before the stamp duty holiday to £12,061 after. Home movers are also enjoying significant savings in the South East (-53%), East of England (-47%) and Southwest (-40%), with the smallest savings in the Northeast (-17%). ), Northern Ireland (-20%) and Wales (-22%), with the lower transaction taxes based on the average home price.
While those who buy and sell a home have seen their costs significantly going down, buyers have seen for the first time that the purchase price of their first property has risen by an average of 8%. Less affected by the stamp duty holiday, they had to spend more on associated travel costs such as legal fees (+ 11%), surveys (+ 5%) and relocation (+ 4%), due to the spike in property prices. First-time buyers in London get a particularly good deal, paying nearly a quarter (24%) more than the UK average for a £2,218 upfront move.
Rob Houghton, CEO of reallymoving, said, “The cost of moving has been steadily climbing for many years but the Chancellor’s stamp duty giveaway has made now the cheapest time to move in decades for those buying and selling a property.
“There’s little let up for first-time buyers, who are facing increased house prices and greater moving costs than a few months ago, making it even harder to save enough for a deposit and to cover the up-front costs of buying a home. Despite this, levels of demand from first-time buyers remains reassuringly high, suggesting they’re still finding ways to buy including through Shared Ownership, Help to Buy and the Bank of Mum and Dad.
“While it’s best to act quickly to take advantage of the stamp duty savings, buyers should also bear in mind that we’re probably seeing a temporary spike in house prices so for some it may be better to wait until the holiday ends when prices are widely expected to return to more normal levels. In an unpredictable market it’s more important than ever to compare ratings and customer reviews when searching for home move services, as well as price, to ensure that when you do decide to buy, your transaction progresses as smoothly as possible.”