Home mover market in UK hits nine year high

Taylor Scott International News

The number of home movers in the UK increased by 9% in the first six months of 2016 compared with the same period in 2015, according to the latest research. Some 174,700 people moved up the housing ladder in the first half of the year even although rising house prices mean home movers need a higher level of deposit for their next property, the report from Lloyds Bank reveals. It means that the number of home movers has reached its highest level since 2008 when it was 179,800 over the same six month period. Since hitting a market low of 117,900 in the first half of 2009 the number of buyers moving along the housing ladder has grown by 48%. However, the report points out that the current number of home movers is still at around half the pre-crisis level of 327,600 recorded in the first half of 2007. Housing affordability for second steppers stood at 6.5 times gross annual average earnings in June 2016. On this measure, affordability has improved over the past five years from 7.3 in 2011. The research also shows that most regions of the UK have seen an improvement in Second Stepper affordability since 2011. The largest improvement was in Northern Ireland where this ratio has fallen from 6.2 in 2011 to 4.9 in 2016, followed by the North down from 7.2 to six and Scotland down from 6.6 to 5.6. In contrast, affordability has deteriorated in London from 9.7 to 10.9 and the South East from 8.7 to 9.4. Whilst a mortgage term of 25 years has been the norm for some time, many home movers are increasingly taking out mortgages where payments are spread over a longer period. In the first half of 2011 the proportion of home movers taking up a 25 to 35 year mortgage stood at an average of 9%. The research reveals that for the same period in 2016 this figure had doubled to almost one in five or 18%. Over the same period, the share of mortgages with a 20 to 25 year term dropped from 36% to 29%. Over the past five years, the average price paid by home movers has grown by 38% from £206,997 in 2011, to £261,550 in June 2016, an increase of £78,609, equivalent to a monthly increase of £1,310. In London the average home mover price has grown by 55% since June 2011 to £540,440, the largest increase in the UK. The capital is followed by the South East where home movers now pay on average, £382,324 an increase of 45% in the past five years. By contrast, the average home mover price in Northern Ireland has edged up over the same period by just 2% from £156,764 to £159,326. In the past year the average home mover price has grown by 9% or £24,056 to £285,606. The average deposit put down by a home mover has increased by 32% in the… Taylor Scott International

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