What’s the Problem?

The rise in property values across all housing types since 2000 has led to an increasing gap between smaller and larger properties. As this gap widens, moving to a larger home has become less affordable, making it financially smarter to consider improving your current home rather than moving.

Market Prices and Property Values

Before making a decision, check recent sale prices of homes in your area to get a sense of current market trends. However, always be mindful of the ceiling price for properties in your area. No matter how impressive your kitchen extension is, if the additional value you create doesn’t match the investment, it could end up being a financial loss.

The Cost of Moving

Moving costs can be significant and vary depending on the value of your current home and the one you're moving to. These costs include Stamp Duty Land Tax (SDLT), which is based on the purchase price of your new home, and estate agent fees, which typically range from 1% to 3% of the sale price.

Stamp Duty Land Tax (SDLT)

The cost of moving is heavily influenced by SDLT, which is applied at different rates based on the value of the property. Homes priced between £125,001 and £250,000 are taxed at 1%, between £250,001 and £500,000 at 3%, and properties over £500,000 are taxed at 4%.

Additional Moving Costs

In addition to Stamp Duty, there are several other costs involved in moving, including legal fees for both selling and purchasing (ranging from £700 to £1,000), standard search charges (£50–£100), and removal costs, which typically cost around £400 per day. Opting for a DIY move can save money.

When Moving Might Not Be Worth It

Given the substantial costs of moving, including stamp duty, estate agent fees, and other expenses, it might make more sense to stay in your current home and invest in improvements. This could offer a more affordable way to get the space and features you need without the financial strain of a move.