The overall cost of moving house has rocketed over the last ten years, now standing just short of £10,000– increasing 225% over ten years. According to the latest survey carried out by PropertyFinder.com
On average, people looking to move home in the UK can currently expect to pay £450 in removal costs, £1,000 in lawyers fees, £3,027 in estate agent’s fees, and a massive £5,481 in stamp duty. Ten years ago, these figures stood at £376, £857, £1,257 and £679 respectively.
Stamp duty alone has rocketed 527% over ten years – even putting house price inflation aside, moving home has become a huge strain on people’s finances, prompting people to stay put and delay progressing up the property ladder. Propertyfinder.com’s monthly confidence index suggests people currently expect house prices to rise by 6.4% over the next twelve months and 31% of home seekers would account a rise primarily to the fact that there are too few properties coming on to the market.
There is also little evidence in the slowing down of house price inflation, meaning that it is becoming harder for people to afford to get on the property ladder or move up the ladder. This coupled with the fact that costs are set to rise this year, especially with the introduction of HIPS could mean that the housing market suffers a difficult year.
It is difficult to predict what is likly to happen to the market over the coming 6 - 12 months. There are many different often conflicting reports that come out. The only thing that most people do agree on is that house prices are at an all time high and that it is extremelly difficult for first time buyers to get on the housing ladder. Many of these first time buyers are hoping for a property price crash like was seen in the late eighties so they can then afford to buy. Maybe this year it might happen, with increased costs, higher mortgages and repossesions at their highest since the eighties. A lot points to the market being in trouble, currently only the cost of mortgages is preventing this. If interest rates were to go up to 8% or 9% then there could be trouble.
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