Rising Costs Cause First-Time Home Owners to Put Off Moving Up the Property Ladder
A recent report from Lloyds Bank has shown that the number of first home owners moving up the property ladder is falling thanks to the immense costs involved in doing so.
The report claimed that the cost of moving home has increased by £50,000 compared to last year. As a result, the number of people moving on up the property ladder has fallen by 9% from last year to a total of 155,000. It is also significantly lower than the equivalent figure for the same period of 2007 which stood at 327,000.
ìWhile the number of home movers has risen significantly since 2009, it remains well below previous levels and has recovered less strongly than first-time buyer numbers,î claimed Andrew Mason of Lloyds Bank, adding that ìthis is likely to partly reflect the high costs associated with moving home, as well as highlighting the difficulties that homeowners can face in finding somewhere suitable to move to due to the shortage of properties available for sale.î
In the first six months of this year, the average cost of moving from a first home to a second in the UK was £261,524. This was a 25% rise on the same figure from 2010. In London, a much sharper rise was seen, with the average price of a second property sitting at £392,882 ñ a whopping 45% higher than the figure from 2010.
Londoners are also facing the highest deposit costs in the whole country, paying an average of £175,000 compared to the equivalent figure for the rest of the UK which sits at £90,000.
This somewhat worrying report was undertaken using data from a wide variety of sources including the Bank of England and the Office for National Statistics (ONS), amongst other bodies.
The trend of increasing property prices for home movers is reflected all across the UK apart form in Northern Ireland, where a fall in prices by 7% was reported.
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