Homemover numbers fall in 2016 for first time in 5 years
According to the latest Lloyds Bank Homemover Review released this month, the number of people moving home has fallen for the first time in five years.
In 2016 the average house price paid by homemovers increased by 7%, from £273,510 in 2015, to a record high of £291,777.
Over the past decade there has been a trend amongst homemovers to choose a longer term mortgage, which extends beyond the traditional 25 year term.
Andrew Mason, Lloyds Bank Mortgages Director, said: “Despite favourable economic conditions including record low mortgage rates, high employment levels and rising real pay growth, the number of homemovers fell in 2016 for the first time in five years. Whilst higher prices will have lifted equity levels for many current owners, the low availability of the ’right type‘ of homes for those looking to move up the housing ladder may have constrained market activity. Of course, higher prices may explain why more homemovers are opting for longer mortgage terms.
“The ability of homemovers, particularly those in their first homes, to move on is an important component in the housing market as it increases the supply of properties, providing homes for new first-time buyers.”
Source of information lloydsbankinggroup
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