How much have you factored in for the cost of moving?
Well, according to recent figures released by Lloyds Bank, property owners moving house in the UK spent £8,248 on average in 2013 – up 6% on the previous year. The increase, according to Lloyds, is mainly stemmed from higher stamp duty, estate agency fees and legal charges, which all expanded by 7% last year.
The total amount spent on moving house in the UK increased from £5.2 billion in 2012 to £6 billion in 2013, according to the report. The amount was the highest in the capital, where a typical London homeowner spent £20,825 on moving, or almost five times the figure estimated in Northern Ireland (£4,253). The cost of moving in the capital corresponds to 47% of the average gross income earned by full-time workers, which stood at £43,866 last year.
People relocating to a new property in the UK last year paid £2,001 in stamp duty and another £3,601 in estate agents’ fees. In London, the numbers were much higher, at £10,850 for stamp duty and £6,510 for fees to agents.
The continuing pickup in house values is making more and more property transactions liable to higher stamp duty, leaving buyers with higher bills. In addition to the costs associated with moving, homeowners also need to take into account the expenses coming from the changing mortgages, among them being product and administration fees, Marc Page, mortgages director at Lloyds Bank, said.
But despite the rise in the cost of moving, relocating expenses are actually lower than the levels measured in 2003 due to the more robust increase in personal income, Page noted.
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