Property buyer momentum growing – major lender

Is there light at the end of the tunnel? According to one major lender’s latest report, there are promising signs of momentum appearing in the market – add a rate cut next month and business might really start to accelerate.

Data from Lloyds Bank’s latest Home Mover Review released today shows a significant increase in the number of people moving homes in the UK, and it seems like we like to be more alone - detached houses are now the most favoured choice among movers. The report highlights that 33% of all home purchases by movers in the past year were detached homes, reflecting a growing desire for more space and maybe the confidence to have a ‘better’ home.

In the first half of 2024, 126,884 home moves were recorded by Lloyds, showing a 10% rise compared to the same period in 2023, when the figure was 115,530. London saw the highest increase, with a 16% rise in home moves (although London was the one area where detached homes were not the most popular) as 10,650 people relocated, likely influenced by the return to office work and the appeal of city living.

The South East remained the region with the most home movers, totalling 28,828, a 13% increase from last year. Scotland also saw a rise, though more modest, with a 3% increase to 13,003 home moves in the first half of the year.

Although the homes have dropped in price over the last year (there has been a 6% drop in the average house price for movers over the past year, bringing it to £392,107) this price is still 20% higher than five years ago. Northern Ireland was the only region to see an increase in home mover house prices, which rose by 3% to an average of £257,611, marking a 38% increase over five years.

The average age of a home mover is now 40, up from 39 last year, with the South West having the oldest average at 41 years. Home movers constitute 44% of all house purchases, down slightly from 46% in the first half of 2023.

Detached homes have grown in popularity among movers, now making up 33% of all home mover mortgages, up from 29% a decade ago. This trend is particularly notable in the East Midlands, where half of all house purchases were detached homes. In contrast, semi-detached homes were the top choice in the North West (36%) and Yorkshire and The Humber (35%).

We also don’t like terraces as much as we once did. The popularity of terraced properties has fallen, dropping from 24% in 2014 to just 19% in 2024, although they are a preferred option for first-time buyers. In Greater London, however, terraced homes (27%) and flats (46%) remain more popular than detached homes for movers.

Amanda Bryden, head of mortgages at Lloyds Bank, commented on the findings: “Moving home can be an exciting step for many, with people choosing to move for a whole host of reasons - seeking a different lifestyle, relocating for a job, needing more space for growing families, or simply looking for a change of scenery. The home mover market has had a positive first half of this year, with an increased number of people making a move, in a sign buyer confidence is improving. Six out of 10 movers have chosen detached or semi-detached properties, as larger living areas make them a popular choice as people seek more space and privacy.”

Bryden also highlighted the positive impact on first-time buyers, noting that increased home mover activity helps free up more properties, like terraced houses, for those entering the property market.

Lloyds Banking Group maintains the largest share of the UK mortgage market. In 2022, the group led with around £53 billion in gross mortgage lending, securing its position as the nation’s leading mortgage provider. This dominance is strengthened by its prominent subsidiaries, Halifax and Bank of Scotland, which significantly contribute to its market presence.