Homemovers struggle as deposit costs rose 40 per cent in decade
The number of people moving home has only increased by 13 per cent over the past decade, as rising prices and deposit costs put a brake on transactions, according to research.
In 2009 there were 308,300 homemovers nationally, which increased to 347,758 in 2019.
Homemovers typically pay £134,598 more for a UK property than in 2009, Lloyds Bank found.
The average price paid jumped 70 per cent, from £196,386 to £330,984 in 2019.
As a result, the amount needed for a deposit to move up the ladder has grown by almost 40 per cent.
Across the country homemovers now put down average deposits of almost £100,000, compared to around £25,000 a decade ago.
Large price increases in London over the past 10 years have coincided with a drop in transactions among movers.
Costs for a next home in the capital have more than doubled to £641,118, from £315,707 in 2009.
It means Londoners now require an average deposit of £197,700 towards a purchase.
Homemovers in the city have declined by almost 25 per cent over 10 years.
Deposits challenging for all
Andrew Mason, mortgage director at Lloyds Bank, said: “We’ve only seen a small increase in the number of people moving home over the last decade, with rising house prices likely to be the main reason for the slowdown.
“With the average deposit being put down remaining relatively steady, it has become more difficult for people to move up the ladder.
“There are still areas that offer promising opportunity for home movers, with Northern Ireland and Scotland in particular looking more affordable.
“However it’s clear that the main challenge of raising sizeable deposits is not limited to first-time buyers.”
Northern Ireland has seen the greatest increase in the number of homemovers with a 47 per cent hike over the decade, as the average price paid rising by only 15 per cent.
The North West and Yorkshire and Humber have seen the second and third largest increases in number of homemovers, up by 34 per cent and 31 per cent respectively.