Brits who plan to relocate to a new house within the UK should prepare for higher costs, which now amount to £7,381 on average, according to a study. The research showed that the average fees have increased to its highest level in the last seven years, even when adjusted for inflation.
Higher stamp duty also contributed to more expensive fees for relocation. The study noted that it accounted for 27% of expenses, which amounted to £2,019 based on the medium home price in 2017. A decade ago, Britons paid £1,814 in taxes for a medium-priced property acquisition.
The economic crisis in 2009 primarily led to an increase in basic stamp duty. The government raised it to £175,000 that year. Solicitors conveyancing fees also accounted for a portion of the expenses. The UK government recently supported the Competition and Markets Authority’s (CMA) proposal, which aims to make property conveyancing services more transparent and competitive.
High stamp duties may have forced homeowners to reduce their asking prices, particularly on Stockton-On-Tees where most sellers have discounted their listings by £13,350 or 8% on average. Experts said that the move reflected the desire to offload properties in a sluggish market in November.
In London, only 39% of listings had discounted prices during the month. However, asking prices fell by £53,251 or 7.4% on average. Those who bought homes in Kensington and Chelsea noticed the biggest markdown at £129,559 on average, which equated to a 7.9% discount.
A home purchase does not end by simply signing the deal and paying the asking price, so be prepared to cover all expenses up until you move into your new house. Learn about the market before you sign the sale agreement.