The research report says that the average age of a home mover is 40 and affordability for second steppers, that is those moving to their second home, has improved over the last year but fallen over the last decade.
The research also shows that since 2008, the average price paid by a home mover has fallen by 10% from £235,078 to £212,586 in 2013. Nationally, home mover property prices grew by 3% in the past year.
Not surprisingly home movers in London, where prices have been rising faster than in the rest of the country, put down the largest average deposit at £126,528 or 34% of the average property value. This is close to three and half times the average deposit put down by home movers in Northern Ireland at £36,912 and the lowest in the country.
The average mortgage advance for a new home mover is £142,046, a quarter higher than a decade ago when it was £101,472.
With the average age of a home mover now at 40 years old, this has increased three years since 2002 when it was 37 in 2002. Most of the increase in buyer age has occurred since 2007.
Typical mortgage payments for a home mover, that is those already in the housing market, stood at 31% average gross disposable earnings in the second quarter of 2013. This has come down sharply from an all time peak of 52% in 2007. This improvement has been due to a reduction in both mortgage rates and house prices.
Housing affordability for second steppers, calculated as the average price of a typical second stepper home less their current equity position, stood at 4.4 times gross annual average earnings in June 2013 compared with a ratio of 4.9 in June 2012.
A typical second stepper's current equity position accounts for 13% or £21,200 of the price of an average second stepper home, a rise from 1% in 2012.
Although the position has improved for those looking to put down a deposit on a new home, for some potential second home movers this may still not be sufficient to put towards a deposit when also taking the cost of moving into account.
‘Housing affordability for the typical second stepper has improved in the past year. Nonetheless, 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,’ explained Nitesh Patel, housing economist at Lloyds TSB.
‘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 in sharp contrast to the number of first time buyers growing by close to 20% over the period,’ Patel added.
The report also reveals a considerable variation in housing affordability between regions, with northern regions more affordable than southern regions for second steppers. This is largely a reflection of the lower prices for second stepper properties in the north. The West Midlands and East Midlands both at 3.1, are the most affordable regions for those in their first home looking to take their next step on the property ladder. While London at 5.7, the South West at 4.6 and the East at 4.5 are the least affordable.