Lloyds finds stamp duty fails to boost numbers moving home

Lloyds finds stamp duty fails to boost numbers moving home

The number of people moving home last year saw little movement from the previous year, despite stamp duty savings and average house prices going up by £1,000.

According to the latest Lloyds Bank Homemover Review, although stamp duty changes provided a savings boost for many homemovers and rising house prices helped to increase equity levels for those already owning their own property, the number of people moving house in 2015 stood at 365,000, slightly behind the 366,400 who moved in 2014.

While the 2015 levels are 16 per cent more than the 2009 market low of 315,800, they are just half of the 2006 peak level of 712,000, Lloyds reported.

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It also found over the last five years,the average price paid by homemovers has grown by 30 per cent from £210,252 in 2010, to £273,491 in 2015, an increase of £63,239 and equivalent to a monthly increase of £1,054.

This was a marginally faster increase than the increase in average house prices across the whole market (29 per cent).

The review found the average deposit put down by a homemover has increased by 22 per cent in the last five years from £74,649 in 2010 to £91,020 in 2015, equivalent to 33 per cent of the average price paid by homemovers.

London saw stronger growth than the rest of the UK, as average prices paid by homemovers in the capital have increased by 51 per cent to £515,004 in the last five years.

Homemovers in the capital have paid the largest average deposit at £183,353, 36 per cent of the average property value.

Northern Ireland saw the average price paid by a homemover drop 4 per cent to £157,368, and also the smallest average deposit of £43,380.

Stamp duty changes, introduced in December 2014, provided homemovers across the UK with a boost by providing buyers with an average saving of £4,530 on purchases, Lloyds calculated.

Andrew Mason, mortgages director at Lloyds Bank, said: “The 2015 stamp duty changes, low mortgage rates and rising real pay growth, provided more favourable conditions for homemovers in 2015, although that hasn’t translated to any increase in numbers.

”2015 brought good news to homemovers. We might have expected the change to the stamp duty structure to have resulted in a greater numbers.

“The ongoing increase in house prices throughout the year will have been especially welcomed by those who bought at the peak of house prices, who have been looking to rebuild their equity in order to make their next move.”