For the first time in 23 years, the number of first-time buyers has exceeded the number of current home owners looking to sell.
In 2011, the number of people looking to sell their house made up 62% of the overall market, however this number is now just 49%. There were more home movers last year than there were in the previous 9 years in 2017, so it’s not surprising to see a reduction this year, however first-time buyers have increased by 3% year-on-year.
Mortgage Price Increase
High prices could be the main factor in putting people off moving home, with the overall UK average cost of moving standing at £296,936 – a sizeable 35% increase over the last 5 years. The average deposit cost has increased over the last 5 years too, now sitting at £99,592.
Andrew Mason, mortgage products director at Lloyds Bank, said:
"Despite continuing low mortgage rates, the homemover market has stabilised with little movement in the first half of this year to leave first-time buyers now driving housing activity, This may be in part due to the Help to Buy scheme enabling first-time buyers to purchase a new property, combined with the low availability of the 'right type' of homes for those looking to move up the housing ladder. The costs of moving house and potential further interest rate rises may also be weighing on potential homebuyers' minds."
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