Moving house costs have skyrocketed under the Labour government

Summer has long been the UK’s peak season for moving house, with demand, inflation, and prices, both reaching annual highs. In 2023, the cost of a summer move climbed by 10.9% from spring, peaking at £1,165.52. This year, however, the surge has been even sharper – notably since the Labour Party won the general election. But what’s driving the increase in moving house costs?

Moving house costs: on the up, and dramatically so

Compare My Move has found that moving house costs have risen a striking 18% from spring. As of summer 2024, the price tag for moving has soared to £1,324.17, setting a new record and adding a fresh layer of financial pressure for home movers nationwide.

There are several factors affecting this:

Increased demand

The number of people moving house has increased up 1.3% from 2023’s peak, this rise in demand is going to increase pressure on moving companies and contribute to significant price increases.

General election

Historically, house prices tend to rise in the 12 months after a general election, an anticipated demand will come with a more stable housing market, with the increasing house prices adding to an increased moving cost.

Q2 price dip

Q2 of 2024 saw prices dip by -1.6%, which, alongside a large increase in demand, set the stage for significant price rises in Q3 of 2024.

Below are the moving house costs changes since 2023 and the affect on inflation:

Why have moving house costs risen?

So, what’s driving this significant rise in removal costs? To understand, we need to examine some key external factors, starting with the surging demand for removals across the UK this year. Quarter 3 saw the highest number of people moving in 2024, marking a 1.3% increase over the peak levels of 2023. The graph below highlights this shifting trend in moving house across the UK:

To understand the 18% rise in moving house costs seen in Q3 this year, it’s essential to look at the changes in mover numbers from Q2. Notably, the increase between Q2 and Q3 in 2024 is smaller than the rise we saw during the same period last year. However, this trend doesn’t align with the sharp increase in removal costs shown above. In fact, Q2 of this year saw a -1.6% dip in prices compared to Q1 – a drop that may explain the more dramatic price jump into Q3.

The demand in Q2 2024 surged 20% compared to Q2 2023, hinting that Q3 demand would likely follow suit. With Q2 prices briefly softening to £1,121.92, there was room for removal costs to rise significantly to meet the anticipated demand spike in Q3.

The timing of the general election on 4 July would have also influenced the UK’s rising moving house costs, as would general UK inflation – which, as announced on Wednesday 20 November, has surged more than analysts expected.

Elections often bring economic uncertainty, especially when there’s a change in government. According to a Compare My Move study, house prices typically see an average increase of 4.6% following an election, and this anticipated rise likely encouraged more people to invest in property post-election, sparking a surge in moving demand.

With historical data pointing to this predictable uptick in housing activity, it’s likely that removal companies anticipated higher demand and adjusted their prices accordingly, pushing the average moving costs to the peak we have seen.

What can we expect for the rest of 2024

We asked Compare My Move’s founder and managing director Dave Sayce what we can expect from moving house costs, inflation, and moving trends after Rachel Reeve’s October budget.

He said:

Summer has long been the UK’s favourite season for moving, but as the days shorten and holidays approach, we expect a seasonal decline in moves. The real question, however, is how sharp that decline will be.

In 2023, the number of movers in Q4 dropped to nearly the same levels seen in Q2, with only a 4.5% difference between the two. This year, Q2 moving numbers are significantly higher than last year’s, which suggests we could see a lot more people moving between October and December than we saw in 2023.

However, we also need to consider the Chancellor of the Exchequer’s October budget, which will impact moving costs and trends for the remainder of the year. A key factor of the budget was the planned end of stamp duty relief in March 2025. This change means homeowners will soon face stamp duty on purchases over £125,000, down from the current £250,000 threshold. As a result, we may see an increase in moves toward the end of this year and early next year as people look to benefit from the current relief.

With demand likely to carry into Q4, it wouldn’t be surprising to see moving costs hold steady or even rise above Q3’s peak levels. If we do see a price drop this Q4, as we did last year, I would expect it to be very slight.

Featured image via the Canary