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Rising house prices help homeowners climb ladder

Rising house prices help homeowners climb ladder

Category: Mortgages

Updated: 13/01/2014
First Published: 13/01/2014

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Rising house prices might be causing concern for those trying to get on the housing ladder, but for homeowners looking to move those increased prices are providing a well-earned boost.

Increasing number of homemovers

Research from Lloyds Bank has revealed that the number of people moving home in 2013 increased by 3% – the second successive annual increase of homemover numbers – with rising house prices giving them more equity and therefore a higher deposit for their next property.

In fact, the average deposit put down by a homemover stood at £76,398 (or 33% of the average price of a new property), an increase of 6% from 2012's figure of just under £72,000. Meanwhile the average price paid for a new property by homeowners has risen to £230,549, an increase of 12% in the past year, despite average property prices rising by just 7.5% in 2013.

"More options"

It's positive news for homeowners who may have suffered when house prices dropped after the onset of the financial crisis, giving them the opportunity to move up the ladder again.

Marc Page, mortgages director at Lloyds Bank, commented:

"As house prices have increased over the last 12 months, we're seeing more people look to take the next step on the housing ladder. Higher levels of equity are increasing the average deposits, with this figure now at over £75,000, and this, in turn, is giving homemovers more options.

"This year we'll see Help to Buy enable more homeowners to progress to the next rung of the ladder, and as a result we would again expect the number of homemovers to increase in 2014."

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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