The number of home moves made during 2017 was higher than any other year since 2007, although high house prices mean transaction levels remain well behind pre-financial crisis figures.
Lloyds Bank estimates there were 370,300 home moves in 2017, the highest figure for a decade. But while this figure is 2% higher than 2016’s total, it remains well behind the 653,700 moves recorded in 2007.
Underlying issues with the housing market continue to make it difficult for people to move up the property ladder.
Over the past five years, the average price home movers paid for their next property has grown by £90,879 to £296,731 – a rise of 44%.
The size of deposit needed for people moving home has also rocketed in the same time frame. Movers in 2017 needed a deposit of £100,387 to make their next step on the property ladder compared to £69,089 in 2012 – a rise of 45%.
A mover in 2017 typically had equity equivalent to 34% of their new property’s value.
The situation is London is even more severe. The average price of a property for a home mover has increased from £357,114 in 2012 to £568,816 today. This is a rise of 59% - faster than anywhere else in the UK.
The average deposit needed for a home mover property in the capital is £196,535, up from £121,495 five years ago - a 62% increase.
Andrew Mason, Lloyds Bank mortgage products director, says: “We’ve seen a slight increase in the number of home movers following a weak 2016. This could be down to low mortgage rates, rising house prices and high employment levels.
“House price increases will have boosted equity levels for many home owners, enabling movement along the housing ladder. For the first time, home movers are choosing to pay an average deposit of over £100,000, with Londoners putting down nearly double this.
“Taking advantage of increased equity levels by putting down a bigger deposit can really make a big difference towards what home movers can afford and can be the difference between a good home and the right home."