Cost of climbing West Midlands property ladder rises £35,000 in five years
New research shows those already on the property ladder are seeing above-inflation costs of climbing it
Home movers paid almost £35,000 extra in 2015 to take their next step on the region’s property ladder than they would have done five years ago, a report has found.
The average price paid for a home in the West Midlands in the first six months of the year by someone who was already on the property ladder and moving to their next property was £215,507, according to the Lloyds Bank Homemovers Review.
This was more than 19 per cent, or £34,809, more than the typical home mover paid in 2010, when the home they were moving into had a price tag of £180,698.
The rise was the highest of any English region outside the South East and East Anglia but tiny compared to the 45 per cent rise in London, which means a rise of £153,535 over five years.
Across the UK, The average deposit put down by a home mover in 2015 was £87,954, which is eight per cent, or £6,405, more than in 2014.
The typical deposit size equates to just over one third (34 per cent) of the average £261,524 price tag for a home.
Country-wide, an estimated 155,000 existing home owners moved to another property in the first six months of 2015, which is 32 per cent more than in the depths of the housing market slump in 2009, but nine per cent fewer than the number moving in the first six months of 2014.
The number of home movers in the first half of this year was also less than half the 327,600 home movers in the first six months of 2007.
A shortage of suitable properties on the market for people to move into has been cited by experts as a factor putting some people off moving house as well as pushing up prices for those who do move, as buyers have less choice.
Andrew Mason, Lloyds Bank mortgages director, said: “Whilst the number of home movers has risen significantly since 2009, it remains well below previous levels and has recovered less strongly than first-time buyer numbers.
“This is likely to partly reflect the high costs associated with moving home, as well as highlighting the difficulties that home owners can face in finding somewhere suitable to move to due to the shortage of properties available for sale.”
The report is based on house price data from Lloyds Banking Group brand Halifax, as well as figures from the Council of Mortgage Lenders, the Office for National Statistics and the Bank of England.
It showed a one-year rise of six per cent in the West Midlands.
However, in the capital the average home mover is paid out £492,882 in the first half of the year.
Here is the average price paid for a home by a home mover in the first half of 2015, and the percentage price change since 2010 according to the Lloyds Bank Homemovers Review:
:: North, £173,898, 16 per cent
:: Yorkshire and the Humber, £188,455, 19 per cent
:: North West, £194,639, 16 per cent
:: East Midlands, £196,097, 19 per cent
:: West Midlands, £215,507, 19 per cent
:: East Anglia, £247,813, 28 per cent
:: Wales, £183,961, 15 per cent
:: South West, £256,318, 17 per cent
:: South East, £348,747, 35 per cent
:: London, £492,882, 45 per cent
:: Northern Ireland, £154,396, minus 7 per cent
:: Scotland, £198,960, 17 per cent