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Estate agency fees contribute to higher average moving costs, says Lloyds

Rising estate agency fees account for more almost half of the increase in average moving costs in the past year, according to new research. 

Lloyds Bank's study into home moving found that the average cost of moving in the UK has increased by £870 to £10,996 during 2016. 

The report states that increasing house prices have pushed up estate agent and conveyancing fees, as well as stamp duty, forcing a 9% rise in costs for the average mover. 

During 2016, Lloyds calculates that the average seller pays £5,404 in estate agency fees, an increase of over £400 (8%) when compared to last year's figure.

Lloyds worked out its figures using data from Halifax's House Price Index from Q2 against an average estate agency fee of 1.8% + VAT as reported by Which? in 2011.

According to the study, average stamp duty costs have increased by 17% to £2,054, with legal costs up 8% to £1,251.

The largest increase in average moving costs was recorded in Greater London at 18%, equivalent to £4,732 – more than five times the national increase.

This is down to Halifax's figures showing that house prices in Greater London have increased by 14% over the past year, compared to a national average of 8.5%.

Lloyds says the average mover in the capital now pays over £30,000 – made up by approximately £15,000 on stamp duty land tax and £11,000 in estate agency fees. 

The lowest average moving costs were recorded in Northern Ireland at £5,401, while costs in Wales, Yorkshire and the Humber, the North East, the North West and Scotland were all between £6,900 and £8,000.

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    Using fee 'data' that came from a survey (not clean, verifiable data) that is five years out of date, rather than the far more recent, published, comprehensive and verifiable data by Premier Property Lawyers in 2015 showing fees averaging a significantly lower 1.2%.

  • Richard Rawlings

    Outrageous that a bank (of all people) should make an issue out of agency fees without recognizing how well sellers are served by agents taking the stress off the move, facilitating the sale, sourcing and qualifying the right buyer and in most instances probably securing a much higher price for the seller, than had the seller sold without the agent’s involvement. In the US, where 5.3 million transactions happen annually, at an average of over 5%, the NAR reports that sellers are 16% better off using an agent than without.

    Why is there such a fixation over what is by far the lowest fee regime in the world, which delivers excellent value for money? The only reason fees have spiraled down over the years is weak agents unable to defend their position against undercutting competitors. The public has remained silent on the issue because agency fees in the UK are really not an issue.

    But here’s one way to help get your fees up – show a prospective seller the Lloyds article and offer to do it for 1.7% - just under the “official national average”! (Assuming you’re not already charging a healthy 2% of course). Have a great day!

  • Matt Faizey

    That was my thought too.

    For 'Lloyds banks study' we should probably read as 'small group of new interns spent a day on google'

  • Terence Dicks

    Hmmmm....and this supposedly trustworthy "research" is from a banking group that cannot even run itself without taxpayers money??

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    Hmmmmmmmmm and they cant make a profit even with all our money

     
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    Averages, averages, averages. Maybe someone like the NAEA should survey their membership to give a more recent average fee so that people can stop quoting a Which? survey that is over 5 years old.

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    I am sure there are thousands of agents who can only dream of an average fee of over £5000.

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    1.8% not sure how many agents are able to achieve this!

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    Many estate agents now see the advantage of providing a comparison conveyancing service to Homebuyers. Providing the tools to calculate conveyancing costs in an instant. Homebuyers and Investors can save and convey

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