Home-moving costs have increased since Labour came to power and are set to rise further, research suggests.
Labour’s general election victory in July may have brought political certainty to the UK, injecting confidence into the property market and boosting house prices.
But tax rises announced in the Autumn Budget and stamp duty changes could all add more to moving costs, making many wonder if now is a good time to buy a property.
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Research by Compare My Move shows removal costs have risen by 18% since the spring.
As of summer 2024, the price tag for moving has soared to £1,324.17, setting a new record.
It attributes this to increased demand and higher house prices since the general election.
There are predictions that costs will rise further as buyers look to avoid changes to stamp duty thresholds in April 2025.
“This change means homeowners will soon face stamp duty on purchases over £125,000, down from the current £250,000 threshold,” says Dave Sayce, managing director of Compare My Move.
“As a result, we may see an increase in moves toward the end of this year and early next year as people look to benefit from the current relief.”
How much does it cost to move home in the UK?
Beyond the mortgage deposit and property price, there are plenty of upfront costs when buying a home.
Buyers often need to pay legal fees as well as for surveys and removals.
You may also need to pay estate agency fees if you are also selling a property.
Analysis by reallymoving, based on quote requests on its comparison website, found homeowners buying and selling a property in 2024 need to pay £13,978 in upfront expenses.
This includes stamp duty, conveyancing, estate agent fees, a Level 2 homebuyer survey, an energy performance certificate and removals costs.
Much of the cost is linked to house prices.
Movers in the North East of England pay the least, with a home move costing £5,492, while those in the capital are paying £30,048 on average.
Are home moving costs rising?
As house prices rise, the cost of moving will naturally also increase.
That isn’t really the Labour government’s fault. But its stamp duty policy will have a factor on what people pay to move.
It plans to lower stamp duty thresholds from April 2025.
First-time buyer relief will drop from £425,000 to £325,000 while those selling and moving up the ladder will pay stamp duty from £125,000 rather than the existing £250,000.
Reallymoving suggests that lowering the stamp duty thresholds will see the cost of moving jump to £16,478.
Movers in the North East and Northern Ireland, who currently benefit from paying no stamp duty based on the median purchase price, will be forced to pay £2,400 and £2,500 respectively when the lower threshold is restored.
The proportion of first-time buyers paying the property tax will also more than double from 17% currently to 39%, according to the research.
“Raising almost £14,000 to finance a home move is a major challenge for many people, especially with the cost of living so high making it even harder to save,” says Rob Houghton, founder of reallymoving.
“We’ve seen an increase in the proportion of first-time buyer activity in the past few weeks as people accelerate plans to move to take advantage of lower stamp duty bills before they rise next spring, but the window will be too tight for many, so it’s wise to budget for higher stamp duty costs just in case.”
He suggests it is always important to shop around to secure the best deals for conveyancing, surveying and removals, paying close attention to reviews as well as price.
Houghton adds: “Over the next few months, it will be even more important to have a reliable and responsive conveyancer who will progress your transaction quickly and efficiently.”
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