According to recent research from Lloyds Bank, the number of people moving home has fallen for the first time in five years.
In 2016, the estimated number of home movers of 345,000 was 4% lower than in 2015, when the figure was 367,000. This is the first annual decline since 2011.
Despite this fall, the overall number of house movers, since the 2009 downturn has increased by 12%.
However when the current number of house movers (345,000) is compared with the figures for a decade ago (712,000) it is clear that the overall decline in house movers is 50% lower.
Lloyd’s stated the continuing rise in house prices and therefore the increase in the deposit required to purchase as a key factor in the decline of house movers.
|Year||Average house price||Average deposit|
|2016||£291,777||£96,968 (33% higher than 2009)|
The figures above represent average house prices across England and Wales but the problem is exacerbated in the south east where house prices have increased by as much as 75%.
The data also indicated that over the past decade there has been a trend amongst home movers to choose a longer mortgage term, which extends beyond the traditional 25 years.
In 2006, only 17% home movers had a mortgage term of over 25 years where as in 2016, 39% of mortgages were for a term of between 25 and 35 years.
Andrew Mason, the Lloyds Bank Mortgages Director, when commenting on the data stated:
“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. Of course, higher prices may explain why more home movers are opting for longer mortgage terms.
“The ability of home movers, particularly those in their first homes, to move on is an important component in the housing market as it increases the supply of properties, providing homes for new first-time buyers.”
If you are looking to move house in 2017 let Peter Robinson & Co. help you carry out your purchase quickly and efficiently. We specialise in all aspects of conveyancing and will advise you every step of the way.
Call Peter Robinson & Co. now on 0161 678 7996.