UK homemover numbers hit highest since financial crisis

The number of people moving home has hit its highest level since the financial crisis.

Nearly 175,000 buyers took their next step on the UK housing ladder in the first half of 2016 – that’s close to the 2008 level, when 179,800 people moved home over the same sixmonth period.

And, that’s also 48 per cent up on the market low in 2009, when there were just 117,900 homemovers in the first half of the year, according to Lloyds Bank

But the current figures are still at around half the pre-crisis level of 327,600 at the beginning of 2007.

Housing affordability has improved over the past five years. And one of the reasons for this is the growing popularity of longer-term mortgages, which help to reduce monthly repayments. In fact, the proportion of homemovers taking up a 25- to 35-year mortgage has doubled since 2011.

Andrew Mason, Lloyds Bank mortgage product director, said: “A favourable economic backdrop, record low mortgage rates and the Stamp Duty changes have supported the market.

“Higher house prices have also boosted homemover equity levels, which in turn have helped towards the purchase of the next home.

“This improvement is likely to have provided uplift to housing demand among existing homeowners even though wage growth has not kept pace during this period.”

Housing affordability has improved in most parts of the UK since 2011, with the largest upturn in Northern Ireland, followed by the north of England and Scotland.

Unsurprisingly, affordability has deteriorated in London and the south east.

The cost of moving up the housing ladder has soared. Homemovers forked out 38 per cent more for a UK property in the first six months of 2016 than they would have done five years ago. That’s an increase of £78,609, or £1,310 each month.

And in London, they faced paying an eye-watering 55 per cent more than in 2011.

Meanwhile, the average deposit put down by homemovers has climbed by 32 per cent over the past five years, from £72,357 in 2011 to £95,385 this year.

And yet again, the figure is higher in London, where the average deposit was £192,133 – four and a half times higher than in Northern Ireland, the lowest.