The homemover prices and deposits have reached a record level in the UK, especially in London (£561,032), according to latest data released by Lloyds Bank.
“In London, the average homemover price has grown by 56% since June 2012 to £561,032, the highest in the UK. The average homemover price in the capital is 41% or £163,579 higher than the South East (£397,452) which is the second most expensive. Northern Ireland has lowest average price of £165,404,” the bank said in its latest statement.
A decade ago, just under two-thirds (64 per cent) of all house purchases financed by a mortgage were made by homemovers. In 2017, this proportion has dropped to almost half (51 per cent). This has a knock-on affect for first-time buyers as there will be fewer properties available for them also in London, which is already reeling under housing crisis owing to price inflation and weak supply.
The average deposit put down by a homemover has increased by 40 per cent in the past five years, from £68,663 in 2012 to £96,109 in 2017. Not surprisingly Londoners put down the largest deposit towards the purchase of their next home; £188,916 - four times higher than the average homemover deposit of £48,080 in Northern Ireland, the lowest.
This data reveals the pressure on the housing market in London where first-time buyers are struggling to climb up the housing ladder.
Homemovers now account for just half of today’s housing market compared to a decade ago when it accounted for two-thirds of the market.