According to the latest Lloyds Bank Homemovers Review, 337,500 people moved up the housing ladder in 2013, as rising house prices have given homemovers a higher level of deposit for their next property.
With house prices rising by 7.5%1 in 2013, home movers are benefitting from more equity and bigger deposits on their next house purchase. The average deposit put down by a home mover 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 home movers for their next property, and the average mortgage advance for a new home mover is £154,150; 41% higher than a decade ago (£109,496).
Not surprisingly home movers 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 home movers in Northern Ireland (£36,951 – the lowest).
The past year has seen the second successive annual increase in the number of home movers (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 home mover 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 home mover has grown by 5%2 from £220,587 to £230,549 in 2013. Nationally, home mover 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 home movers 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 home movers to increase in 2014.”
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