The number of people moving house has fallen by 4%, making it the largest drop in seven years, according to a Lloyds Bank Review.
Most shockingly, there has been a 45% increase in prices for Londoners between 2013-2018, compared to 39% in the rest of the UK.
Andrew Mason, Mortgage Products Director, Lloyds Bank, said that ‘for the first time since the mid-90s’ those making first-time purchases are accounting for more of the property market than home movers.
He suggested some Government initiatives have seen a rise in new homeowners:
“The number of first-time buyers continues to increase as a result of schemes such as Help to Buy and changes to Stamp Duty.”
HTB loans buyers cash to purchase a property with just at 5% deposit, encouraging them to climb on the property ladder. It is only after the first five years that charges are added, according to the moneywise website.
These schemes encouraged a three percent increase in first-time buyers last year.
Lloyds Bank Homemover Review pointed out that the average deposit for a home mover has however increased by 31% in the last five years. Statistics from UK Finance show the price rocket from £76,398 in 2013 to £99,786 in 2018.
Londoners require the largest deposit of £204,473 towards the purchase – four times the average homemover deposit of £51,141 in Northern Ireland.
This means ‘it’s not surprising that people are taking longer to make their next move’, according to Mason.
Northern Ireland and the North are the only regions which have seen a steady rise in the number of home movers in the last twelve months, by 7% and 1% respectively.
This research is based on data from the Lloyds Banking Group housing statistics database as well as the Council of Mortgage Lenders, the Office for National Statistics and the Bank of England.