Homemover market stagnant, says lender
A stagnant homemover market is leading to a dearth of properties for first-time buyers, according to Lloyds Bank.
It said there were 171,300 homemovers in the first six months of 2017 – 3,175 down from the same period in 2016.
Homemovers now account for around half (51%) of the housing market compared to 64% a decade ago.
Since hitting a market low of 117,900 in the first half of 2009, the number of homemovers has grown by 45% (or 53,000). However, the current numbers still remain at just under half (48%) of what it was before the financial crash in the first half of 2007 (327,600).
The flat homemovers market leaves first-time buyers driving housing activity, but there are slim pickings available for them to choose from.
Andrew Mason, Lloyds Bank mortgage products director, said: “In the past year, the number of homemovers appears to have stabilised despite continuing low interest rates and rising employment. There are a number of factors which could be influencing this, more people are paying off their mortgages and not moving, with supply at historic low levels there could be a shortage of suitable homes coming on the market and the cost of moving house could be putting people off.
“This has meant that homemovers now account for just half of today’s housing market compared to a decade ago when it accounted for two-thirds of the market. This has a knock on affect for first time buyers as there will be fewer properties available for them also.”
Homemover prices at record levels
Over the past five years, the average price paid by homemovers has grown by 41% (£84,869) from £206,122 in 2012, to £290,9913 in June 2017, equivalent to a monthly rise of £1,414.
The average deposit put down by a homemover has also risen by 40% in the past five years, from £68,663 in 2012 to £96,109 in 2017.