Number of Scottish people moving home has fallen to a five year low at a time when average prices have increased steadily, a new analysis shows.
Overall the number of movers fell to 14,662 moving in first half of 2019, a level that was last seen in 2014, the latest Bank of Scotland Homemover Review shows.
The report says that mover activity across Scotland dipped as deposits rise and housing availability declines, making it difficult for home owners to take their next step on the property ladder.
It also shows that the average price paid by home movers in Scotland has grown by 17% over the past five years, from £188,852 in 2014, to £221,515 in 2019. However, this is still well below the UK average which has risen by 32% over five years.
London remains the most expensive home mover region, almost twice the UK average of £329,648 at £650,510. The least expensive home mover region is Northern Ireland with an average price of £189,905.
The South East recorded the biggest increase of 43% over the same time period with East Anglia and Greater London also recording significant increases of 41% and 37% respectively.
The average deposit put down by home movers in Scotland has also increased by 21% in the past five years, from £58,285 in 2014 to £70,332 in 2019, in line with the average increases across the UK in the same time period of 22%. Londoners pay the largest average deposit of £213,907 towards the purchase of their next home.
‘The slow rate of home movers is a reflection of increased deposits, higher stamp duty charges, as well as potential interest rate rises,’ said Graham Blair, Bank of Scotland mortgages director.
‘There is also low availability of the perfect next home, such as an extra bedroom and outdoor space for those looking to move up the housing ladder, which all together are having an impact on the overall number of people moving house,’ he pointed out.
‘Despite a dip in the number of people moving in 2019, house prices have still increased and may also be contributing to the slowdown,’ he added.
