For the first time, homemovers are paying an average deposit of over £100,000, with Londoners putting down nearly double this, reports Lloyds Bank.
What’s the latest?
The number of homeowners moving property rose to the highest level for a decade in 2017 despite house prices reaching record levels.
An estimated 370,300 people traded up or down the property ladder during the year, 2% more than in 2016 and the highest level since 2007, according to Lloyds Bank.
Homemovers paid a record £296,731 on average for their next property, nearly £6,000 more than they paid in 2016.
The typical deposit they put down also broke through the £100,000 barrier for the first time across the UK as a whole, with those in London putting down nearly £200,000.
Why is this happening?
Lloyds attributed the rise in people moving home to a combination of factors. Low mortgage rates have helped to make trading up the property ladder affordable, while strong house price rises in recent years mean existing homeowners have built up significant equity cushions.
At the same time, high levels of employment have helped people to feel confident about making big financial decisions, such as moving home.
The rise also comes following a slight decline in the number of people moving home in 2016, which saw the first dip for five years.
Who does it affect?
The number of property owners who moved home rose in all areas of the country in 2017 except Greater London.
Lloyds said high house prices in the capital had adversely impacted the market, with only 22,600 people moving home, 6% less than in 2016.
At the other end of the scale, the south east saw the highest number of people trading up or down the property ladder at 65,400, more than double the number of movers in the south west, which was in second place at 27,500.
Sounds interesting. What’s the background?
During the past five years, the average price paid by a homemover has soared by 44% or nearly £91,000.
People trading up the ladder in London have seen the biggest change with the typical homemover in the capital paying 59% or £211,702 more than they did five years ago at £568,816.
Those in the north have seen the smallest increase at 29% or £41,960.
It is not only property prices that have soared, the average deposit put down by a homemover has also risen by 45% in the past five years to average £100,387.
Unsurprisingly, people in London put down the most at £196,535, while those in Northern Ireland had the smallest deposits at £46,032.
Homemovers, average price and deposit by region (2017):
Top 3 takeaways
- An estimated 370,300 homeowners moved house in 2017, the highest level since 2007
- Homemovers paid a record £296,731 for their next property, nearly £6,000 more than in 2016
- The typical deposit they put down also broke through the £100,000 barrier for the first time
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