SAVVY home sellers are managing to save on the cost of moving despite property prices increasing by 11.1 per cent over the last year. However, these savings are likely to be cancelled out by the cost of Home Information Packs (HIPs) which become compulsory from June 1.

With property prices having risen steadily movers are keen to save where they can.

According to Andy Gray, head of mortgages for the Woolwich, sellers are using their strong position to drive down the costs of moving.

"The market definitely favours sellers. The lack of homes on the market is helping them negotiate deals with agents, and to a lesser degree solicitors, as agents are desperately trying to find enough good quality property to satisfy the increasing demand," he said.

"As a result the cost of moving for sellers has decreased by about 10 per cent since last year ­­– it now costs on average £4,666 to sell a home compared to £5,181 last year. We also expect the pressure to continue on fees as long as it stays a sellers’ market, especially as the introduction of HIPs will add to the cost of selling."

From June 1 it will be compulsory for anyone selling a home to produce a pack containing an energy assessment, searches and legal documents and optional home condition reports.

Some agents are already trying to tempt home owners to sign up with them by offering free HIPs – albeit at the top end of the market – but the true cost of a pack is more likely to be between £400 and £1,000 to the homeowner.

Although HIPs will shift some of the costs of moving from buyers to sellers, the impact of this for most buyers is likely to go unnoticed.

Stamp duty already contributes on average £9,750 to buyers’ costs. buyers fork out about £10,745 compared with £10,832 in 2006. The slight reduction is due to reduced solicitors’ fees (down on average by 11 per cent) and with Land Charge costs coming under HIPs this will further reduce the cost for buyers as the cost is transferred to sellers under the process. This will reduce costs to buyers by approximately £200 to an average of £10,545.

"Sellers not only have the advantage of there being more demand for property than is available, thus driving up asking prices, they are also squeezing the professionals for every penny they can to cut the costs of moving," added Mr Gray.

"In contrast, buyers are having to pay more or less the asking price to secure the property they want as well as forking out for stamp duty and other costs. Basically if you are a seller moving into rented accommodation or abroad, it’s about as good as its gets at the moment."