Moving house now costs you £9,500!

by Money Doctor Monday 26 March, 2007

Matron here!

It seems that everything is increasing in cost these days. If it's not car tax, then its Council Tax, and if it's not Council Tax then it is some other tax the Government has plucked out of thin air!

Today we found out via the website Propertyfinder that the average cost of moving house in the UK has now risen to £9,486!

This cost has more than tripled in the past 10 years, with charges being increased by higher stamp duty (thanks Gordon!) and estate agents' fees.

While estate agents' charges of £3,027 have risen roughly in line with house prices, stamp duty has shot up from an average of £543 to £5,009 (outrageous!) while legal fees now average about £1,000 while removal costs are around £450.*

Warren Bright of Propertyfinder said the increased costs have made moving house a more difficult task; "In the past, when costs were low, there was little to prevent people from making a number of small steps up the housing ladder," he said. "Now that transaction costs, especially stamp duty, are prohibitive, people are more reluctant to move, or are making fewer, bigger jumps up the ladder."

Back in 1996 stamp duty was levied at just 1% on properties sold for more than £60,000. Many buyers, including most first-time ones, escaped paying the tax at all as the average house in the UK cost just £64,441, according to the Halifax.

Since then higher rates of duty have been introduced. Properties worth over £250,000 are now taxed at 3% and those over £500,000 at 4%.

With the average house UK price now more than £200,000, the majority of homes attract the tax when they are bought, even though the 1% stamp duty charge now kicks in only once the house is worth £125,000.

So it seems that not only is it an expensive move to buy a house, but it is expensive when you want to move!

Once again I feel slightly overwhelmed by the shenanigans of the property market...I think I need a strong cup of tea and a nice piece of cake.

(*The analysis of costs by Propertyfinder includes legal and removal fees but does not include fees charged by mortgage lenders or surveyors)

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Comments

Michael Bennett says:

Tuesday 27 March, 2007 / 17:03

Gordon Brown alias (Dick Turpin) once again has our best interests at heart, but why is it the only way to slow down the housing market i.e rising prices is tax, slow down demand, this does not have to be done with taxes it can be done by to use a labour slogan "getting back to basics" when I purchesed my first house I saved for two years and paid a 10% deposit, now, if your mum says your cant have apple pie with your dinner on monday you can borrow 105% mortgage and be in your own house in three weeks, and back out again in six month in debt.
If you have to work and save when you buy a house you have more respect for your own property, if you act like a typical melon you'll pay the price by losing your 10% it will do the trick so stop throwing money at people and make deposits a law it used to be, remember if you cant save you probably cant pay your bills, but theres no profit in people paying there bills on time these days them huge charges and jobs for the boys are more important.

Mark says:

Wednesday 28 March, 2007 / 11:03

the average UK house price is now over £200,000 ?

Swindon, Wilts says:

Saturday 21 April, 2007 / 20:04

In my area selling a house rarely makes a profit, so to move creates an enormous debt. The government should provide affordable, rented accommodation for all if one is to be penalised for making an attempt at independence.

leo says:

Monday 23 April, 2007 / 23:04

i think its outragous that it costs you to move house,you spend all of your life trying to get on the property ladder in the first place and they still rip you off when you want to go 1 step further! the chances for first time buyers are getting slimmer by the minute.

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