Lloyds Bank

Rise in Homemovers for the first time in three years

28 August 2019

Rise in homemovers for the first time in three years despite deposits remaining above £100k

  • Over the past five years, the average price paid by homemovers has grown by 32%

  • Cost of moving home in the UK has jumped 4% since last year

  • Deposits increased by 22% over the past five years – with London homemovers putting down more than £200k

The number of people moving home increased for the first time in three years in the first half of 2019.There were 160,540 homemovers in the first half of 2019, up by 810 (1%) compared with the same period in 2018.

Homemovers are still behind first-time buyers however where the numbers increased at a slightly higher rate of 7,460 (5%) to 173,790 in the first half of 2019.

Regionally, the North, South East and Scotland are seeing falls (between 0.3% and 1.9%) in the numbers of homemovers in the first half of 2019 compared to the same period in 2018.

In 2019, four regions have seen increases in the numbers of homemovers by over 2% – North West (15,979 up 2.5%), West Midlands (13,634 up 2.6%) and Northern Ireland (3,280 up 2.5%).

The South East has the highest number of homemovers in the UK at 36,316 – this has dipped slightly (0.9%) over the last year and 9.5% below its 2014 high of 40,120.

The cost of moving

Over the past five years, the average price paid by homemovers has grown by a staggering £79,627 (32%) to £329,648.

 The South East has seen the highest growth, from £137,376 (43%) to £460,395 followed by East Anglia (41%), Greater London (37%), the North West and East Midlands (both at 36%).

 London remains the most expensive homemover region, almost twice the UK average (£329,648) at £650,510. The least expensive homemover region is Northern Ireland with an average price of £189,905.

 Deposits remain at record highs of over £100,000 for the third consecutive year (£105,260)

The amount of deposit or existing equity required has increased by 22% 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 more than £200k (£213,907) for the first time, which represents an increase of 26% over the past five years. The next largest deposit amount is in the South East at £150,970 followed by South West (£117,298) and East Anglia (£110,207). All other regions have deposits at less than £100k.

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%.

Andrew Bickers, Mortgages Director at Lloyds Bank, said: “The homemover 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 homemovers 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.”

 

 Ends

 

Table 1: Annual number of Homemovers (purchasing with a mortgage) – UK

 

Number of Homemovers

Annual % change

Number of First Time Buyers

Annual % change

2009 H1

115,860

-35%

72,180

-34%

2010 H1

151,950

31%

92,360

28%

2011 H1

133,460

-12%

83,580

-10%

2012 H1

147,960

11%

97,980

17%

2013 H1

138,240

-7%

110,460

13%

2014 H1

160,770

16%

140,140

27%

2015 H1

150,690

-6%

131,900

-6%

2016 H1

168,090

12%

151,650

15%

2017 H1

164,070

-2%

163,360

8%

2018 H1

159,730

-3%

165,330

1%

2019 H1

160,540

1%

172,790

5%

Source: UK Finance

 

Table 2:  Homemovers: Annual Average House Price % Change, 2009-2019**

 

2009 £

2014 £

2018 £

2019 £

1 year % change

5 year % change

10 year % change

North

154,712

169,339

191,000

201,484

5%

19%

30%

Yorkshire and the Humber

163,496

177,871

218,762

234,608

7%

32%

43%

North West

172,403

183,593

225,621

250,139

11%

36%

45%

East Midlands

167,803

187,369

247,987

254,054

2%

36%

51%

West Midlands

183,039

210,076

260,277

280,716

8%

34%

53%

East Anglia

205,941

228,175

309,035

322,695

4%

41%

57%

Wales

164,926

177,769

212,609

221,452

4%

25%

34%

South West

219,874

249,014

315,248

332,330

5%

33%

51%

South East

266,559

323,019

417,469

460,395

10%

43%

73%

Greater London

337,226

473,430

575,721

650,510

13%

37%

93%

Northern Ireland

192,626

142,700

169,353

189,905

12%

33%

-1%

Scotland

179,348

188,852

211,368

221,515

5%

17%

24%

UK

212,099

250,021

300,593

329,648

10%

32%

55%

Source: Lloyds Bank calculations, LBG ** 12 months rolling average to June for each year.

 

Table 3:  Homemovers: Average Price And Deposit By Region, 2019**

Region

Average House Price 2019 (£s)

Average Deposit  2014 (£s)

Average Deposit  2019 (£s)

Deposit as % of purchase price 2019

5 Year % Change in Deposit

 
 

North

201,484

53,019

57,415

28%

8%

 

Yorkshire and the Humber

234,608

57,690

67,691

29%

17%

 

North West

250,139

55,754

71,607

29%

28%

 

East Midlands

254,054

61,096

76,092

30%

25%

 

West Midlands

280,716

71,123

86,989

31%

22%

 

East Anglia

322,695

83,690

110,207

34%

32%

 

Wales

221,452

57,521

67,902

31%

18%

 

South West

332,330

95,787

117,298

35%

22%

 

South East

460,395

116,677

150,970

33%

29%

 

Greater London

650,510

169,550

213,907

33%

26%

 

Northern Ireland

189,905

37,386

56,763

30%

52%

 

Scotland

221,515

58,285

70,332

32%

21%

 

UK

329,648

86,398

105,260

32%

22%

 

Source: Lloyds Bank calculations, LBG. **12 months rolling average to June.

 

Table 4 – Number of Homemovers by Region

 

H1 2009

H1 2014

 

H1 2018

H1 2019*

North

5,080

6,740

 

7,180

7,161

Yorkshire and the Humber

8,520

12,300

 

13,380

13,600

North West

9,860

13,840

 

15,590

15,979

East Midlands

8,600

12,780

 

13,510

13,552

West Midlands

8,540

12,430

 

13,290

13,634

East Anglia

5,290

7,170

 

6,850

6,878

Wales

4,610

6,120

 

6,680

6,846

South West

11,840

15,910

 

15,830

15,885

South East

27,900

40,120

 

36,630

36,316

Greater London

11,520

16,670

 

12,630

12,738

Northern Ireland

1,990

2,250

 

3,200

3,280

Scotland

11,660

14,140

 

14,940

14,662

UK

115,860

160,770

 

159,730

160,540

Source: UK Finance, *Lloyds Bank calculations, LBG

 

Table 5 – Average Age of Homemover

Region

2009

2014

2019

 
 

North

42

42

42

 

Yorkshire and the Humber

40

41

41

 

North West

42

40

40

 

East Midlands

44

41

41

 

West Midlands

41

40

40

 

East Anglia

45

40

39

 

Wales

42

41

41

 

South West

45

42

40

 

South East

44

40

40

 

Greater London

41

38

38

 

Northern Ireland

42

40

40

 

Scotland

43

40

41

 

UK

43

40

40

 

Source: Lloyds Bank

 

Table 6 – Homemovers Purchases by Property Type

 

Home Movers

 

Semi Detached

Detached

Terraced

Bungalow

Flats

North

38%

26%

24%

8%

4%

Yorkshire and the Humber

36%

27%

25%

9%

3%

North West

39%

26%

24%

7%

4%

East Midlands

32%

40%

18%

9%

2%

West Midlands

37%

33%

19%

5%

5%

East Anglia

26%

38%

19%

13%

3%

Wales

29%

33%

25%

11%

3%

South West

27%

28%

26%

10%

8%

South East

27%

31%

24%

10%

9%

Greater London

24%

8%

34%

3%

31%

Northern Ireland

28%

39%

15%

15%

3%

Scotland

21%

29%

18%

13%

19%

UK

29%

29%

23%

9%

10%

Source: Lloyds Bank calculations, 12 mths to June

 

 


 

NOTES:

 

The Lloyds Bank Homemover Review tracks conditions for those who already own a home. The review is based on data from the Lloyds Banking Group house price database, UK Finance, the Office for National Statistics and the Bank of England.

 

1 Crude average house price over the 12 months to June

2 Bought with mortgage finance

Data Sources:

 

This research is based on data from the Lloyds Banking Group housing statistics database as well as UK Finance, the Office for National Statistics and the Bank of England.

 

House Prices. The prices used in this research are simple arithmetic ('crude') averages.  These prices are not standardised and therefore can be affected by changes in the sample from period to period.

 

Historic figures on the number of homemovers and first time buyershave been sourced from UK Finance.

 

"This report is prepared from information that we believe is collated with care, however, it is only intended to highlight issues and it is not intended to be comprehensive. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report.  Any use of this report for an individual's own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance. © Lloyds Bank plc all rights reserved 2019."

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