Despite this decline, the number of homemovers in H1 was almost a third (32%) higher than in the same period in 2009 at the depth of the housing market recession, according to the latest Lloyds Bank Homemovers Review. However the number of homemovers in the first half of this year was still less than half the total in the first six months of 2007 (327,600).
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 homemovers over the last few years. As a result, homemovers have declined as a proportion of all new mortgage financed home purchasers from 72% in 2004 to 54% in 2015.
The average price paid by a homemover has grown by 25% over the past five years from £208,654 in 2010 to £261,524 in 2015 – an increase of £52,869 or a monthly rise of £881. Homemover 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 in 2014 (£81,549). This equates to 34% of the average price paid by homemovers of £261,524.
Regionally, homemovers in the capital put down the largest average deposit - £175,273 - 36% of the average property value of £492,882. This is more than four times the average deposit put down by homemovers in Northern Ireland (£43,625 – the lowest). Homemovers in East Anglia (37%) and the South West (36%) put down the largest average deposit in percentage terms.
Andrew Mason, Lloyds Bank mortgages director, commented:
“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.”
