The number of homemovers in the first half the year fell 2% compared to the same period in 2016.
According to new research from Lloyds, there were 171,300 homemovers in the first half of 2017 compared with 174,300 in the same period last year.
A decade ago, just under two-thirds (64%) of all house purchases financed by a mortgage were made by homemovers.
Homemovers now account for 51% of all house purchases compared to 64% a decade ago.
This means there are fewer properties coming on to the market for first-time buyers, who have already been hit by the lack of housing supply.
The first half of 2016 saw 18,000 more homemovers – an increase of 11% compared to the first half of 2015.
However, this increase is most likely due to owners making home purchases before the introduction of the new stamp duty charges for second and additional homes.
Andrew Mason, Lloyds Bank mortgage products director, said: “In the past year, the number of homemovers appears to have stabilised despite continuing low interest rates and rising employment. There are a number of factors which could be influencing this, more people are paying off their mortgages and not moving, with supply at historic low levels there could be a shortage of suitable homes coming on the market and the cost of moving house could be putting people off.
“This has meant that homemovers now account for just half of today’s housing market compared to a decade ago when it accounted for two-thirds of the market. This has a knock on affect for first time buyers as there will be fewer properties available for them also.”
Over the past five years, the average price paid by homemovers has grown by 41% to £84,869 from £206,122 in 2012, to £290,991.
In London, the average homemover price has grown by 56% since June 2012 to £561,032 – the highest in the UK.
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