With house prices rising by 7.5%1 in 2013, homemovers are benefitting from more equity and bigger deposits on their next house purchase. The average deposit put down by a homemover in 2013 now stands at £76,398, which is an increase of 6% since 2012, from just under £72,000.
The average deposit of £76,398 equates to 33% of the average price paid by homemovers for their next property, and the average mortgage advance for a new homemover is £154,150; 41% higher than a decade ago (£109,496).
Not surprisingly homemovers in the capital put down the largest average deposit - £144,505 - 34% of the average property value. This is close to four times the average deposit put down by homemovers in Northern Ireland (£36,951 – the lowest).
The past year has seen the second successive annual increase in the number of homemovers (those purchasing with a mortgage who already own a property), with a rise of 3% from 2012 (326,600). Two years ago in 2011, there were 315,600 homemover house purchases, 21,900 fewer than in 2013. Whilst this number has been growing in the past two years it is still 55% lower than the annual average between 2003 and 2007 (750,000).
Since 2008, the average price paid by a homemover has grown by 5%2 from £220,587 to £230,549 in 2013. Nationally, homemover property prices grew by 12%2 in the past year.
Marc Page, Lloyds Bank mortgages director, commented:
“As house prices have increased over the last 12 months, we’re seeing more people look to take the next step on the housing ladder. Higher levels of equity are increasing the average deposits, with this figure now at over £75,000, and this, in turn, is giving homemovers more options.
This year we’ll see Help to Buy enable more homeowners to progress to the next rung of the ladder, and as a result we would again expect the number of homemovers to increase in 2014.”
