Rise in pace of second step house moves

Surging house prices around the UK has again boosted the equity of many owners
Surging house prices around the UK has again boosted the equity of many owners

The number of home owners moving house reached a seven-year high in 2014 as rising property values boosted the amount of cash they had sitting in their existing homes, a report has found.

An estimated 365,400 people moved home last year with a mortgage across the UK, marking an eight per cent year-on-year increase and the highest figure seen since 2007, Lloyds Bank found.

The report said that surging house prices last year boosted the equity position of many home owners, helping them to make the jump up the property ladder.

In particular, people who were living in the first home they had ever bought and were trying to take their second step on the property ladder saw their equity position boosted by an influx of first-time buyers into the market in 2014.

Schemes such as Help to Buy helped to widen the availability of low deposit mortgages for people trying to take their first step on the property ladder, helping to unleash a flood of demand from first-time buyers into the market last year.

Lloyds estimates that potential “second steppers” are now sitting on £10,000 more equity in their home than they were a year ago, due to the increase in prices paid for first-time buyer homes.