Moving home in London now costs over £30,000 – and this is before the Stamp Duty rise

New research has revealed that London homeowners buying and selling a property in 2024 need to pay £30,048 in upfront expenses. This means that home movers in London pay more than twice the national average moving cost of £13,978.

And unfortunately things are going to get worse next year.

When Stamp Duty thresholds are reinstated on 1st April 2025, the cost of moving will rise up another £2,500 to a record high of £32,549.

But it’s First Time Buyers in London who will be the worst hit next April, when their moving costs will jump by an enormous 245% from £2,551 currently to £8,801, thanks to the FTB stamp duty threshold returning back to £300,000.

Taking into account that Stamp Duty, conveyancing, estate agent fees, a Level 2 Homebuyer survey, an EPC and removals costs, comparison site reallymoving has analysed data from almost 140,000 quotes to determine the typical cost of moving home in 2024.

The Cost of Moving in 2024 - London

First Time Buyers currently pay no Stamp Duty at all for home purchases under £425,000, which is the median FTB purchase price in London according to reallymoving’s data.

But London is the only location where the government’s decision to reinstate lower Stamp Duty thresholds from 1st April 2025 will push First Time Buyers over the threshold, based on the median FTB purchase price, meaning they need to find an additional £6,250 in Stamp Duty on top of their current £2,552 bill for buying a home.

This will push their overall moving costs up 245% from £2,551 currently to that eye-watering £8,801.

The proportion of First Time Buyers paying Stamp Duty in London will increase from 49% currently to 80% when the thresholds change. This presents a significant additional upfront cost at a time when First Time Buyers are already grappling with high house prices and mortgage rates – as well as extortionate rents which make it harder than ever to save a deposit.

Reallymoving’s research shows it already takes nearly 8 year and 7 months to save to buy a first home in London, assuming First Time Buyers can afford to put aside 10% of their salary each month.

Based on the London average FTB purchase price, they need to raise £45,012 to cover a 10% deposit and additional moving costs such as conveyancing, a survey and removals. After April, this will rise to £51,301, taking 9 years and 9 months to save.

With the cost of many home mover services tied to house prices, a 1.8% annual increase in the median purchase price in London in 2024 means conveyancing fees and stamp duty bills are both higher than last year, when the total cost of moving home was £29,543. The cost of hiring a removals firm has also risen 3% year on year.

Reallymoving founder and CEO, Rob Houghton says, “Raising over £30,000 to finance a home move is a major challenge for most people, especially with the cost of living so high making it even harder to save. But it’s First Time Buyers in London who are going to be the hardest hit by far when their stamp duty threshold goes back to £300,000 next spring.

“We’ve seen an increase in the proportion of First Time Buyer activity in the last few weeks as people accelerate plans to move before April, but the window will be too tight for many and we’re going to see large numbers of First Time Buyers forced to put their plans on hold and save for even longer.

“Our data shows that the fewest home moves take place during January and February, but bear in mind that the New Year and early spring may well be busier in 2025 as people rush to beat the stamp duty deadline. Anyone planning a move now should factor in the higher stamp duty charge, in case they don’t complete in time.

“Always shop around to secure the best deals for conveyancing, surveying and removals, paying close attention to reviews as well as price. Over the next few months, it will be even more important to have a reliable and responsive conveyancer who will progress your transaction quickly and efficiently.”

© The Standard Ltd