The number of people moving home fell in the first half of 2018, to now account for less than half (49%) of the housing market, according to Lloyds Bank.

The lender noted that this is the first time homemover numbers have fallen behind first-time buyers since 1995.

There were just 170,000 homemovers in the first half of 2018, down by 33,000 (16%) from the second half of 2017.

Lloyds Bank suggested that this inactivity could be down to a lack of suitable properties for sale, although admitted that the trend is reflected in the broader housing market, which also shows little sign of movement.

First-time buyer boost

The fall in homemover numbers coincides with a 3% rise in first-time buyers to 175,500, so that for the first time in over two decades, just under a half (49%) of all house purchases financed by a mortgage were made by homemovers – down from 62% in the first half of 2011.

Andrew Mason, Lloyds Bank mortgage products director, said: “Despite continuing low mortgage rates, the homemover market has stabilised with little movement in the first half of this year to leave first-time buyers now driving housing activity. This may be in part due to the Help to Buy scheme enabling first-time buyers to purchase a new property, combined with the low availability of the ‘right type’ of homes for those looking to move up the housing ladder.

The costs of moving house and potential further interest rate rises may also be weighing on potential homebuyers’ minds.

“However, it is good to see the number of first-time buyers increasing, helping to keep some movement along the property ladder.”

The price is high

Over the past five years, the average price paid by homemovers has grown by 35% (£77,457) from £219,479 in 2013, to a record high £296,936 in 2018.

In East Anglia, the average price a homemover pays has grown by 46% since 2013 to £305,612, the highest rate of growth in the UK. Greater London and the South East follow with 45% growth in average property prices since 2013 – Greater London has the most expensive homemover homes with an average price of £566,200, followed by the South East (£412,759).

The least expensive homemover homes can be found in Northern Ireland with an average price of £170,031.