Lloyds: Home Movers Prefer Detached Houses

Detached homes are the most popular choice among people moving home, as buyers are increasingly seeking privacy and space, according to the latest Lloyds Bank Home Mover Review.

The bank reported that detached properties accounted for 33% of all home mover mortgages, compared to 29% a decade ago. In the East Midlands, this figure rose to half (50%) of all house purchases, showing a significant increase of +10pp since 2014.

Heading further north, semi-detached homes were the preferred option for movers in the North West (36%) and Yorkshire and The Humber (35%).

Over the past decade, terraced properties have lost popularity among movers as they are now more commonly seen as a suitable choice for first-time buyers. The percentage of people opting for a terraced home as their next move has decreased by -5pp, dropping from 24% in 2014 to 19% in 2024. Only in the expensive Greater London area are terraced homes (27%) and flats (46%) more popular than detached homes among home movers.

Overall, the number of people relocating has increased by +10% in the first half of 2024, according to the review.

During the initial six months of this year, there were 126,884 recorded home moves, compared to 115,530 in the same period in 2023.

Greater London experienced the highest growth in home relocations into or around the capital, with 10,650 (+16%) individuals moving house, possibly due to a gradual return to office work that increased the appeal of city living.

The South East had the largest number of home movers across the UK, with 28,828 people moving home in the first half of this year, a +13% increase compared to the same period last year.

Scotland also witnessed a considerable number of home movers (13,003), although this marked a more moderate +3% rise compared to the first six months of 2024 and 2023.

Home movers accounted for 44% of all house purchases, representing a slight decrease of two percentage points (pp) from the first half of 2023 (46%).

On average, home movers paid a house price of £392,107, which is a decrease of -6% over the past year but an increase of +20% compared to five years ago (£327,112). Nearly all regions in the UK saw a decrease in prices in the past year, with Northern Ireland being the only area where home mover house prices increased. The average house price in Northern Ireland now stands at £257,611, which is +3% higher than in 2023 and +38% higher than five years ago.

Over the last five years, the average home mover deposit has increased by +22% to £129,951 on average, in line with the rise in home mover house prices over the same period (+20%). This indicates that movers have equity in their new homes equal to around 33% of the property price – in the South West, Scotland, and Northern Ireland, this percentage increases to 35%.

The average age of a person moving home is currently 40, which is a year older than the average age a year ago. In the South West, the average age of home movers is 41.

Amanda Bryden, head of mortgages at Lloyds Bank, commented, “Moving home can be an exciting step for many, with people choosing to move for a variety of reasons – seeking a different lifestyle, relocating for work, needing more space for growing families, or simply desiring a change of scenery.

“The positive trend in the home mover market during the first half of this year suggests an increasing number of people are confident in making a move. Six out of 10 movers have opted for detached or semi-detached properties, which are popular choices due to their spacious living areas that offer more privacy.

“This upbeat scenario also bodes well for first-time buyers – as the turnover of property stock assists homeowners in climbing the property ladder, it also opens up more opportunities for first-time buyers to enter the market, particularly with terraced houses being more readily available.”

Nathan Emerson, CEO of Propertymark, stated, “Certain types of homes will always be in demand among consumers at various times, but the primary issue in the housing market is the shortage of supply, leading to soaring house prices. The UK government has set an ambitious target of constructing 1.5 million new homes by 2029, translating to the need for building a new housing estate with 1,150 homes every single working day before the end of this parliamentary term.”

“Politicians must ensure there is diversity in tenure to provide a wide choice for individuals seeking specific types of housing. Propertymark supports a ‘connected communities’ strategy to ensure that new homes are developed in the right areas at the right times, with a careful consideration to preserve greenbelt locations where other suitable lands, such as disused industrial areas and abandoned buildings, may be better suited.”