£50k hit when climbing the property ladder
The average homeowner in England faces an estimated £15,513 in associated costs when upsizing their home, according to the latest research by Yopa. However, in London this figure climbs as high as £47,704.
The full-service estate agency analysed the estimated cost of upsizing across England, based on selling an average flat or terraced home and buying an average semi-detached or detached property, while taking into account the associated costs.
Upsizing costs £15,513 before the price difference
Across England, the average price of a flat or terraced home currently stands at £231,746, whilst the average current market value of a semi-detached or detached home stands at £372,293 – a difference of £140,548.
However, this difference in property price isn’t the only financial consideration for those looking to climb the property ladder.
Yopa estimates that selling a property at the average flat or terraced house price comes with £4,902 in associated costs once estate agent fees, conveyancing, an EPC, and removals are taken into account.
The cost associated with purchasing a property at the average semi-detached or detached house price sits at £10,610, including Stamp Duty, conveyancing, and a homebuyer report.
Combined, this puts the estimated cost of climbing the property ladder at £15,513, before the £140,548 difference between the value of the property being sold and the one being purchased is taken into account.
Stamp Duty is by far the largest individual cost facing upsizers, with the average bill estimated at £8,615 across England.
Cost climbs to almost £50k in London
The cost of climbing the property ladder varies considerably depending on where in England you’re looking to upsize.
London is by far the most expensive region, with the combined cost of selling and buying estimated at £47,704.
The South East ranks second at £24,216, followed by the East of England (£18,353) and the South West (£16,571).
The West Midlands (£12,028) and North West (£11,091) also see upsizers face five-figure costs, while the East Midlands comes in at £9,917 and Yorkshire and the Humber at £9,057.
The North East is home to the lowest estimated cost of upsizing, although homeowners still face an estimated £7,066 in associated costs when selling their existing property and purchasing their next home.
Verona Frankish, CEO of Yopa, commented:
“When upsizing, the obvious consideration is the difference between what your current home is worth and the price of the property you’re looking to purchase, but that’s only part of the financial equation.
There are costs on both sides of the transaction and, when combined, the average upsizer in England is looking at more than £15,000 simply to sell their existing home and purchase the next one.
Stamp Duty is by far the biggest contributor and this means those climbing the ladder in higher-value markets are hit particularly hard, with the cost of upsizing rising to almost £50,000 in London.
Of course, upsizing is often a necessary move as our circumstances change and our families grow, but it’s important to factor in the full cost of moving from the outset, not just the additional value of the property you’re looking to purchase.”
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