Transaction costs hindering upsizing

Unusually for this time of year, we are seeing fewer traditional ‘trade-up’ buyers where they are selling an existing London property to buy a larger one nearby or move to a different neighbourhood. Many can’t justify the significant transaction costs in return for often marginal lifestyle difference. 

Instead, buyer demand is being driven by three profiles: tenants moving out of rented accommodation, buyers relocating to or repatriating back to London, and clients seeking pied-à-terres. 

For anyone who has already paid stamp duty once in the past decade, there is a reluctance to do so again. The financial hurdle to move for what might be perceived as a relatively modest improvement – an additional bedroom, being slightly closer to transport or a larger garden – involves not only a jump in price bracket, but also significant stamp duty. 

For many, the financial cost of moving feels disproportionate to the benefit gained and unless the change is truly material, they are coming to the conclusion to stay put. Those who are in a position to move are feeling the pressure to ‘get it right’, recognising the importance of informed advice to navigate choice, assess value and buy well for the long term.