Lloyds bank have released figures stating that 155,000 existing home owners moved to another property in the first half of 2015, which is roughly a 9% decrease on the same period of 2014. When this figure is compared to the first half of 2007, it shows less than half of the 327,600 home movers then.
Lloyds Bank suggest this plummet is partially due to the lack of appropriate properties on the market for people to move into, also due to increasing prices for those who do move. Lloyds share this view with others that agree that people aren’t moving due to cost and the difficulty in getting a mortgage. To meet the needs of our growing population we need more affordable homes, but at the current prices this will be hard to accomplish.
According to the bank the average price paid for a home in the first six months of the year by someone who already had their foot on the property ladder and moving to their next property was £261,524.
This figure was 25%, or £52,870, more than the typical home mover paid in 2010, when the home they were moving into would have cost £208,654.
- In London, home movers face paying 45% or £153,535 more for a property than they would have done just five years ago, with homes there now averaging at £492,882.
- In Wales, home movers are paying 15 % more for a property than five years ago.
- In Scotland the increase is 17% and in Northern Ireland movers pay 8% less.
The average deposit a home mover would put down in 2015 was £87,954 which is an 8% or £6,405 increase compared to 2014.
As it stands the typical deposit size is 34% of the average £261,524 price tag for a home.