Number of home movers falls for first time in five years
The number of people moving home has fallen for the first time in five years, according to Lloyds Bank.
It said that there were 354,000 home movers in 2016, 4% down on 2015, when there were 367,300 movers.
This marks the first drop in moving since 2011, following four successive years of growth. Despite the current number of home movers being 12% higher than at the lowest point of the housing downturn in 2009, it’s still a whopping 50% below the 712,000 seen a decade ago.
Andrew Mason, Lloyds Bank mortgages director, said: “Despite favourable economic conditions including record low mortgage rates, high employment levels and rising real pay growth, the number of home movers fell in 2016 for the first time in five years. Whilst higher prices will have lifted equity levels for many current owners, the low availability of the ’right type‘ of homes for those looking to move up the housing ladder may have constrained market activity.”
Home mover prices hit record high
The average house price paid by homemovers increased by 7% last year, according to Lloyds, from £273,510 in 2015, to a record high of £291,777.
These rising prices have driven up average home mover deposits to £96,968, an increase of 33% (£23,978) from £72,270 in 2009. Over the past year, the average deposit has grown by £5,640 (6%).
In London, home movers are, on average, putting down £192,432 to move to the next rung of the housing ladder, an increase of 74% (or £82,015) since 2009.
At the other end of the scale, home movers in Northern Ireland have seen average deposits fall by over a quarter (25%) from £60,409 in 2009 to £45,371 – the lowest in the UK.