27 Apr

Cost of buying a house on the rise

Cost of buying a house on the rise

The cost of buying a new property has increased by 59 per cent over the past ten years, according to a new study.

Once stamp duty, estate agent fees, survey costs and removal charges are totalled up, the average buyer is spending around £12,000 - in addition to the cost of the property itself.

The research produced by the Post Office Money and the Centre for Economics and Business Research (Cebr) shows the average cost rose to £11,894 at the end of last year.

However, in 2004, the same costs came to £7,475 - this is almost double the growth in living costs based on the Consumer Prices Index (CPI) measure of inflation.

Despite recent changes in stamp duty levels, announced in December's budget, it would appear rising house prices means many buyers are still having to pay large tax bills when moving home.

Regionally, those in the South East of England have seen the largest increase in moving costs, with a 97 per cent increase over the last decade - reaching £16,510 in 2014.

London is the most expensive place to move house, with the average cost of £27,946 to change address, while Northern Ireland buyers pay out an average of £6,453.

John Willcock, head of mortgages at Post Office Money, explained that many buyers underestimate how much moving house can cost and this can lead to difficulties in the long-term.

"With prospective home buyers' attention firmly fixed on saving for a deposit, the additional costs of moving can often come as an afterthought - particularly for first-time buyers who are taking their first steps on the property ladder," said Mr Willcock.

He added: "Although house prices may continue to rise there are steps buyers and movers can take to reduce the amount they pay on top of this.

"Planning ahead is essential and potential home buyers should be setting aside savings specifically for these costs. These 'add-ons' should be considered as part of the overall cost of buying or moving home."ADNFCR-1222-ID-801785121-ADNFCR

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