Data from Lloyds Banking Group showed that home movers were still behind first-time buyers as this segment saw a five percent increase of 7,460 to 173,790 in the first half of 2019.
Regionally, the North, South East and Scotland saw falls of between 0.3 per cent and 1.9 per cent in the numbers of home movers in the first half of 2019 compared to the same period last year.
In 2019, four regions saw increases in the numbers of home movers by over two per cent – North West was up 2.5 per cent to 15,979, West Midlands saw a 2.6 per cent increase to 13,634 and Northern Ireland rose by 2.5 per cent to 3,280.
The South East had the highest number of home movers in the UK overall at 36,316. This has dipped slightly by 0.9 per cent over the last year and is currently 9.5 per cent below its 2014 high of 40,120.
Increased costs
Over the past five years, the average price paid by home movers has grown by £79,627 – or 32 per cent – to £329,648.
The South East has seen the highest increase at 43 per cent from £137,376 to £460,395 followed by East Anglia with 41 per cent, Greater London at 37 per cent, the North West and East Midlands which have both seen increases of 36 per cent.
London remains the most expensive home mover region, almost twice the £329,648 UK average at £650,510. The least expensive homemover region is Northern Ireland with an average price of £189,905.
Soaring deposits
The amount of deposit or existing equity required has increased by 22 per cent over the past five years from £86,398 in 2014 to £105,260 in 2019.
In the capital, the deposit required for London homes has increased to £213,907 for the first time, representing an increase of 26 per cent over the past five years. The next largest deposit amount is in the South East at £150,970 followed by South West’s £117,298 and East Anglia’s £110,207. All other regions have deposits at less than £100,000.
Northern Ireland has the least amount of deposit required at £56,763 but has seen the biggest increase over the past five years at 52 per cent.
The Lloyds Bank Home mover Review tracks conditions for those who already own a home and is based on data from the Lloyds Banking Group house price database, UK Finance, the Office for National Statistics and the Bank of England.
Andrew Bickers, mortgages director at Lloyds Bank, said: “The home mover market has seen some positive movement in the first half of this year, but first-time buyers are still dominant in driving housing activity, helping to keep movement along the property ladder.
“The slow rate of home movers is a reflection of growing deposits, higher stamp duty charges and potential interest rate rises. The perfect ‘next’ homes are also becoming less available, such those with an extra bedroom and outdoor space – which is all in the mix when it comes to the number of movers we are seeing.”
