The number of people moving home in Scotland has fallen to levels last seen in 2014, with only 14,682 current homeowners moving home in the first half of 2019, the Bank of Scotland has found.
The bank’s latest Homemover Review showed that during 2019, homemover activity across Scotland dipped as deposits rise and housing availability declines, making it difficult for homeowners to take their next step on the property ladder.
Graham Blair, Bank of Scotland mortgages director, said: “The slow rate of homemovers is a reflection of increased deposits, higher stamp duty charges, as well as potential interest rate rises.
“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.
“Despite a dip in the number of people moving in 2019, house prices have still increased and may also be contributing to the slowdown.”
The average purchase price paid by homemovers 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 homemover region, almost twice the UK average (£329,648) at £650,510.
The least expensive homemover 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 homemovers 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 (22%).
Unsurprisingly, Londoners pay the largest average deposit of £213,907 towards the purchase of their next home.