10th August 2015
The amount of people moving home in the first half of 2015 was almost a third, or 32%, higher than in the same period in 2009 when the housing market recession was enduring its worst phase.
The data from Lloyds Bank however also shows that the number of home-movers in the first six months of this year was 9% lower than during the same period in 2014 – and less than half the total of the first six months of 2007, just prior to the onset of the crisis.
In all, the Lloyds Bank Homemovers Review, estimates 155,000 people moved home in the first six months of 2015.
The rise in house prices over the past few years has boosted homeowners’ equity in their current homes making it easier for them to fund a deposit towards the purchase of their next property.
The percentage decline in the number of homemovers between the first halves of 2014 and 2015 was closely in line with the 10% fall in first-time buyers. First-time buyer numbers have, however, risen significantly more quickly than home-movers over the last few years. As a result, home-movers have declined as a proportion of all new mortgage financed home purchasers from 72% in 2004 to 54% in 2015.
Looking at the numbers, Andrew Mason, Lloyds Bank mortgages director, said: “There was a modest decline in the number of homemovers in the first half of the year compared with 2014, which was in line with the general softening in housing market activity.
“Whilst the number of homemovers has risen significantly since 2009, it remains well below previous levels and has recovered less strongly than first-time buyer numbers. This is likely to partly reflect the high costs associated with moving home, as well as highlighting the difficulties that homeowners can face in finding somewhere suitable to move to due to the shortage of properties available for sale.”
In terms of costs the research concluded that the average price paid by a home-mover has grown by 25% over the past five years from £208,654 in 2010 to £261,524 in 2015 – an increase of £52,869, equivalent to a monthly rise of £881.
As home-mover property prices have increased by 6% over the past year, the average deposit put down by a homemover in 2015 was £87,954; 8% higher than 2014’s £81,549, equating to 34% of the average price paid by movers which sits at £261,524.