Cost of moving home in Wales rises by 96% to record high of £11,438 following end of Land Transaction Tax giveaway

·       Average cost of buying and selling a home in 2021 rose from £5,833 before 30th June to £11,438

·       Legal fees fell after 30^th June, but estate agent fees, surveys and removals costs continued to climb

·       First Time Buyers in Wales have seen no change in the cost of moving, currently at £1,908

·       Welsh homeowners face larger price increases than those in England, Scotland or Northern Ireland

·       LTT holiday aside, increases in moving costs were prompted by rising house prices and high demand

The cost of moving home in Wales has almost doubled from £5,833 before the end of the Land Transaction Tax (LTT) holiday on 30^th June 2021 to a record high of £11,438 – meaning the average person buying and selling a home is required to find an extra £5,605 in up-front costs, according to Reallymoving’s annual Cost of Moving research, released today.

The comparison site for home move services has analysed data from 37,000 quotes in the last year to reveal that while conveyancing fees have fallen since 30^th June, the return of LTT for properties worth over £250,000, along with rising estate agent fees, survey and removal costs mean it’s more expensive than ever to move home in Wales. This is in part due to rising house prices, which impact associated costs, as well as higher demand for services.

The largest expense for home movers who are both buying and selling, is once again stamp duty, which has risen from £0 based on the average purchase price in Wales, to £4,700. Estate agent fees are the next highest cost at £3,929 (+26%) on average, followed by legal fees at £1,585 (-3%), removals at £678 (+25%) and a survey at £491 (+2%). The cost of an Energy Performance Certificate (EPC) remains unchanged at £55.

Table 1: Change in the cost of moving home in Wales in 2021 (Source: Reallymoving)

Table 2: Change in median property price (Source: Reallymoving)

Homeowners in Wales face larger hikes in moving costs than other home nations

Of the home nations, those buying and selling property in Wales face the biggest leap in the cost of moving (+ 96%), compared to +71% in England, +47% in Scotland and +11% in Northern Ireland. This trend is largely driven by more notable increases in estate agent fees and removals prices, as well as the return of LTT, making the sharp rise in overall costs to move home in Wales comparable to those in some of the most expensive regions of Great Britain, such as London and the South East, East of England the South West. In contrast, less expensive regions in the North of England still escape paying stamp duty or pay a minimal amount based on the median purchase price, resulting in only moderate increases in the cost of moving, while existing homeowners in the North East have actually seen the cost of moving fall.

Moving costs for First Time Buyers remain stable

First Time Buyers in Wales have seen the cost of buying their first property remain the same at £1,908 throughout 2021, despite some fluctuations in the cost of individual services. While legal fees have fallen by 9% since the end of the LTT holiday, the cost of a survey and removals have risen by +15% and +8% respectively. Comparatively, in England and Northern Ireland First Time Buyers have seen the cost of moving fall by 1% overall, while in Scotland costs remain the lowest of all the home nations despite an increase of +7% since the LBTT holiday ended.

Commentary

CEO Rob Houghton said: “The cost of moving home in Wales is at a record high and movers have had to absorb a huge hike in up-front costs since the main Land Transaction Tax holiday ended on 30^th June – the largest increase of all the home nations. Exceptional levels of demand have driven up the price of professional services this year, but conveyancing costs have dropped slightly since the end of June as pressure on the system has eased.

“The cost of moving for First Time Buyers in Wales is high at almost £2,000, but the good news is that overall costs have remained stable, making it easier for new homebuyers to plan a move.

“The property market remains buoyant with strong competition for homes, so it’s more important than ever to compare ratings and customer reviews when searching for home move services, as well as price, to ensure that when you do decide to buy, your transaction progresses as smoothly as possible.”