The number of moves falls by a third in 2022, but prices continue to rise, says Halifax

The number of people who have moved house fell by more than a third in the first half of this year, but the total remains above pre-pandemic levels.

There was a 133 percent increase in the number of people who moved house during the tax break, according to Halifax, so the number is likely to drop this year.

However, the number of people moving houses continues to increase compared to pre-pandemic levels and, aside from last year, it is the busiest start to the year for people moving houses since 2008.

House prices for movers continue to rise, increasing 5% in the last year and 42% in the last five years

The stamp duty holiday lasted from July 2020 to September 2021.

Movers now make up just under half (47 percent) of all homebuyers, with the remainder being made up of first-time buyers and homeowners.

Last year saw an exceptionally high number of people move due to the suspension of the Government stamp duty which was put in place to support the housing market during the covid pandemic.

Regionally, Greater London saw the biggest drop in engines with a total drop of 45 per cent compared to the first half of 2021.

Just 13,765 people moved to the London metropolitan area in the first half of this year, according to Halifax.

In contrast, Scotland saw a much smaller drop in engines, just 13 per cent, which was the lowest of any UK region.

Andrew Asaam, Halifax’s director of housing, said: “The number of people moving out so far this year is lower than the record set last year – this was not unexpected, and the housing market has has remained buoyant in 2022 so far.”

“Looking at the five-year trend, a different story emerges, with the number of people moving house in the London area remaining relatively stable.

“With the average cost of a London removal house now at £733,628, it is perhaps not surprising that the market in London will correct itself, and many are unlikely to move to and around the capital without additional support. “.

Chris Sykes, technical director at mortgage broker Private Finance, said that while the numbers are strong, the slowdown remains concerning.

‘A second step is big for many. Going from the typical small home for a first-time buyer to a larger family home these days seems impossible to some with the costs involved,” he added.

‘For example, someone may have bought a £350,000 two-bedroom flat as their first purchase a few years ago, paying a 10 per cent deposit, £2,500 stamp duty with the first-time buyer discount and a few thousand pounds in legal and other fees.

‘Now, they want to buy a £500,000 three-bedroom semi-detached property to start a family. Stamp duty alone for this move would cost £15,000, the sales fees for your current home would be a few thousand and solicitors’ costs for a sale and purchase a few thousand.

‘They may find they need a greater than 10 per cent deposit depending on their income for this next purchase as well. That’s a lot of money to find for many.

“This could cause a real problem in the long run by creating a stock-out of first-time buyer properties.”

While the number of people moving house has fallen over the year, the median house price for people moving house rose 5 per cent to £403,163. Over five years, the average price has seen a sharp increase of 42 percent.

In cash terms, it means that those who buy a house now have £134,108 on average to move to the next rung of the ladder. In 2017 this figure was £98,219.

At the UK level, the typical deposit is now 33 per cent for all movers, compared to 20 per cent for first-time buyers.

Commenting on the figures, L&C’s David Hollingworth said: ‘The growing need for a larger deposit underscores the fact that buyers are facing higher prices and are putting up larger sums as a down payment.

‘Some of that may be possible as a result of a higher sales price for your previous home, but higher and higher prices will naturally put pressure on affordability.

The number of people moving house in Greater London fell 45% compared to last year, the biggest drop of any part of the country.

The number of people moving house in Greater London fell 45% compared to last year, the biggest drop of any part of the country.

‘At the same time, cost-of-living increases will have started to kick in this year and homebuyers will also have felt higher rates trickle into the market.

“Those who are moving house will probably want to lock in their rate to protect themselves against further rate increases, especially as other costs, such as energy, are currently volatile as well. They have the option of short term to very long term solutions depending on how much stability they want to incorporate.

Locking in for ten years or more is possible, but borrowers just need to consider any applicable lock-in period and whether that might affect flexibility later on.’

Taking a regional look across the UK, Scotland has seen the lowest change in house price growth since 2017, at 30 per cent.

Moving companies in London have to make the largest deposits for your new home, with an average capital of £248,379.

The type of moving companies they choose has also changed. Single-family and semi-detached homes are the most popular housing type among people, with a 29% and 28% share of the moving market, respectively.

Over the past decade, single-family homes have increased in popularity, experiencing a seven percentage point increase.

The best mortgage rates and how to find them

Mortgage rates have risen substantially as the Bank of England base rate has risen rapidly.

If you’re thinking about buying your first home, moving or remortgaging, or are a buy-to-let landlord, it’s important to get good, independent mortgage advice from a broker who can help you find the best deal.

To help our readers find the best mortgage, This is Money has partnered with independent broker L&C.

Our L&C-powered mortgage calculator can allow you to filter offers to see which ones best match your home value and deposit level.

You can also compare different fixed-rate mortgage durations, from two-year arrangements to five-year arrangements to ten-year arrangements, with monthly and total costs displayed.

Use the tool at the link below to compare the best deals, taking both fees and rates into account. You can also start an online application on your own time and save it as you go.

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