House prices, stamp duty and stress: costs blamed for 3 million cancelled home moves across UK

In advance of the Government’s Spending Review on Wednesday 11 June, and the publication of its much-anticipated housing strategy, the HomeOwners Alliance has revealed that 3.3 million homeowners have cancelled plans to move in the past two years.

More than 800,000 potential moves were delayed or ditched due to stamp duty costs alone, according to a survey by the property advice website.

The most common reasons for changing plans were costs — with high house prices the most signifcant barrier cited by 35 per cent of homeowners.

The average London home now costs £552,000, according to the Office of National Statistics, which is almost 14 times the average London salary.

Stamp duty tax was also flagged by almost a quarter (24 per cent) of surveyed homeowners as their main reason for putting off moves. While often referred to as a tax on buyers in London and the South East, where property prices are higher, stamp duty tax, which is paid to the government on completion, still seems to be an issue that concerns people across the UK.

For a family wanting to upsize to a home worth £400,000, stamp duty adds £10,000 to upfront costs and, in London, where the average property price is over £100,000 more, this figure is significantly higher. Stamp duty on the average London home (£552,000), for instance, equates to a bill of £17,600.

“Stamp duty is acting as a handbrake on the housing market,” says Paula Higgins, CEO of HomeOwners Alliance. “When a family faces a £10,000 stamp duty bill just to move to a £400,000 home — before they've even paid for surveys, legal fees, and removal costs — it's no wonder a quarter of potential movers are staying put.” The HomeOwners Alliance believes scrapping stamp duty tax for everyone buying a home to live in would do a lot to spur people into purchasing their next property and resurrect the housing market, freeing up much-needed stock for families and downsizers.

Also highlighted as a factor was the stress of moving in itself, with 35 per cent of respondents saying this was deterring them from moving forward with their plans.

Last year, according to Quick Move Now, 31.3 per cent of property sales fell through prior to completion. Stricter mortgage criteria, problems thrown up during conveyancing and surveys, plus issues and delays in getting essential paperwork from freeholders, make the moving process fraught and a stress that many people choose to avoid — even if their current housing situation isn’t ideal.

What’s more, 28 per cent of respondents said that moving costs were too high; when you’re paying out large sums for solicitors, surveys and removal companies, this only adds to the pressure of the process. “Making the home buying and selling process less of a Russian roulette game and more certain and streamlined would give people the confidence to move,” explains Higgins.

Other issues flagged in the survey include a lack of motivation, with 27 per cent highlighting the shortage of suitable homes as a reason for them ditching future plans. This shortage was seen across the board, from families looking for larger houses with more bedrooms, to step-free homes for older people wanting to downsize, as well as affordable properties for first-time buyers getting a foot on the ladder.

“Our research reveals a housing market in crisis — not because people don't want to move, but because they simply can't afford to. With over 800,000 homeowners shelving their moving plans [due to stamp duty alone], we're seeing families trapped in unsuitable homes, unable to upsize for growing children or downsize as they age,” adds Higgins. “While house prices are difficult to control, the government does have levers it can pull, and we hope to see this reflected in the Spending Review and the long-awaited housing strategy.”

The HomeOwners Alliance research surveyed a nationally-representative sample of 2,000 UK adults.