Estate agency fees have been singled out as the biggest cost of moving house.
The claim is in research by Lloyds Bank based on an average property price of £265,238 – and an average 1.8% agency fee.
This is a Which? figure dating back seven years, although Which? itself has since accepted that the average fee is 1.2%.
Others put the average agency fee as lower still, given the pressure from online agents and the battle to win instructions.
The bank’s claims, embargoed until this morning, are likely to obtain space – and credibility – in the national press, while infuriating those agents who charge far less than either 1.8% or 1.2%
The bank claims that the total cost of moving – incorporating agency, legal and conveyancing fees as well as Stamp Duty and removals – is £12,110 as of the end of the second quarter of 2018, up 4% annually.
Estate agency charges – based on the infamous 2011 Which? research of 1.8% plus VAT – were the biggest cost at £5,729, says the bank, while Stamp Duty has increased by the most compared with the same period last year, up 13% to £3,262.
The bank said both these costs have been pushed up by rising house prices.
However, if a charge of 1.2% estate agency fees were applied, including 20% VAT, the average cost to the home mover would be £3,819 – still higher than the average Stamp Duty but with the gap narrowed.
The research also uses Lloyds in-house data, claiming survey fees have decreased by 15% annually, but that the cost of conveyancing is up 3%.
Andrew Mason, mortgages director at Lloyds Bank, said: “The costs involved when moving home have risen again over the past year, with the average now topping £12,000 for the first time.
“The positive growth seen in house prices will increase Stamp Duty and also provide equity to help pay these fees, but it’s important to consider the full costs involved when going through the home moving process and make sure all bases are covered to avoid any unexpected shocks at the time.”
Here are the Lloyds Bank costs of moving:
|Estimated costs 2008 (£)||Estimated costs 2017 (£)||Estimated costs 2018 (£)||1 year % change||1 year change £|
|Total cost of moving home||9,220||11,624||12,110||4%||486|