There were around 149,000 mortgages for home movers in the first six months of this year – 2% fewer than for the first half of 2012.
In contrast, the number of first-time buyer mortgages rose by 19%.
In the first half 2007, the number of home mover mortgages was over double at 327,600.
According to Lloyds TSB, a number of ‘second steppers’ simply cannot afford to move. The average home mover deposit this year is £70,540, plus average moving costs of £9,000.
Nitesh Patel, housing economist at Lloyds TSB, said: “There are many potential second steppers who are still in their first home which they bought in the run-up to, and at, the peak in house prices in 2007.
“Many of these home owners may still be unable to move due to having either very low, or negative, equity in their homes.
“The lack of equity for many home owners in their existing home largely explains why the number of home movers in the first six months of 2013 was broadly unchanged compared with a year earlier.”
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Comments
Meanwhile, how many empty-nesters are there out there, rattling around three or four bed properties that they are expecting to achieve a windfall on?
Yes, there's something the price hikers haven't quite noticed which ought perhaps to be spelled out.
If prices are hyped up again with the use of low interest lending, whoever then wants to move up the housing ladder will have to borrow even more - and interests rates can only go one way too!!
If prices are left to find there own levels, without undue interference in the marketplace, they will go up less, making it easier for those wishing to move up the ladder later.
Contrary to many banks and lending institutions' views on wanting to stimulate more lending, not doing this would actually help the housing market to recover its former levels of turnover.
At a time like this, not putting into place new policies that are designed to help stabilise prices is mere folly.
The market should be encouraged to 'move' using true market prices, once again - not ones based on overblown borrowings.
The message is crystal clear for all those whom may be interested in reading it - other than estate agents of course ;-)
Now is the perfect time to make a few strategic changes here.
This has been pointed out and pointed out again and again the the HPC canutes for the last 5 years. The property market is over extended; the gap between tiers is too wide so despite a proper old hype in the market that we have seen in the past 4 months, transaction volumes have not risen signficantly and we won't.
Good luck to all the purchasers who have gone out and got their super affordable mortgages at record low interest rates. As soon as unemployment levels get down to 7% interest rates are going to rise. That should be fun to watch- not!
Just how do people get jobs like Housing Economist or Chancellor of the Exchequeur that with no experience or knowledge of the subject?