The cost of moving house for the average home owner has risen more slowly than the increase in house prices since 2000, according to the Woolwich.
In its annual ‘Cost of moving home survey 2006’, the Woolwich found for those on the lower rungs of the property ladder, the cost of moving from an average terraced home of around £149,906 to a semi-detached house at £174,744 costs home owners in England and Wales £5,304.
In 2000, home owners paid around £3,333 to make the same kind of move from a terraced to a semi-detached house, which is an increase of just 59% compared to house price growth of 95% on these types of homes.
But the Woolwich point out the further up the ladder you go, the more expensive it gets, as moving from a semi-detached house costing £174,744 to a detached home worth £293,248, costs £12,535 today, compared to £4,535 in 2000.
This is an increase of 176% compared to house price growth on these properties of just 70%, which the Woolwich suggests can be attributed to the fact most detached properties have gone through the government’s 3% stamp duty threshold currently set at £250,000.
Andy Gray, head of mortgages for the Woolwich, says contrary to popular opinion the increase in moving fees since the start of the decade for people on the lower rungs of the property ladder has not kept pace with house price inflation, meaning they should not be put off either getting on the ladder, or taking the next step up.
He adds this is particularly the case now, as competition amongst solicitors and estate agents has increased as the less buoyant market has meant less business to chase.
But Gray warns: “However, it’s at the top end of the market that people are getting unsettled by headline numbers like £25,000 to move up from a semi to a detached. At these levels people are thinking seriously about extending or converting a basement or loft which can be more cost effective than moving.”
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