Stagnant homemovers market impacts first time buyers

According to the latest review

The number of homemovers – current homeowners moving house – fell by two per cent in the first six months of 2017 compared with the same period in 2016, according to the latest Lloyds Bank Homemover Review.  

There were 171,300 homemovers in the first half of 2017 compared with 174,300 in the same period last year. The first half of 2016 saw 18,000 more homemovers (an increase of 11 per cent compared to the first half of 2015). This increase may have been due to owners making home purchases before the introduction of the new stamp duty charges for second and additional homes.

Since hitting a market low of 117,900 in the first half of 2009, the number of homemovers has grown by 45 per cent (or 53,000). However, the current numbers still remain at just under half (48 per cent) of what it was before the financial crash in the first half of 2007 (327,600).  

Flat homemovers market leaves first time buyers driving housing activity 

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).  

Andrew Mason, Lloyds Bank mortgage products director, said: 

“In the past year, the number of homemovers appears to have stabilised despite continuing low interest rates and rising employment. There are a number of factors which could be influencing this, more people are paying off their mortgages and not moving, with supply at historic low levels there could be a shortage of suitable homes coming on the market and the cost of moving house could be putting people off.  

“This has meant that 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. This has a knock on affect for first time buyers as there will be fewer properties available for them also.”