Call for your free quote 0800 955 0058

Wealthy home movers boost value of agreed sales by 26pc for 2020

Strong demand from affluent home movers has boosted the total value of sales agreed by 26% in 2020 compared to the previous year.

There has been a shift in the demographic profile with more sales from home movers in affluent areas with higher house prices boosting the total value of sales in 2020, according to the Zoopla House Price Index.

More sales are from older, equity rich and long-term homeowners with higher house prices increasing the value of sales agreed by 26% or £62 billion compared to 2019 taking the annual total value to £300 billion.

October rebounded with the value of mortgage approvals up 68% and with higher property values in the East of England and South East total values are 37% up compared to last year.

There are fewer first time buyers as mortgage lenders require larger deposits of 15% and higher due to the economic uncertainty resulting from the Covid pandemic.

House prices rise during 2020

Annual UK house price growth was 3.9% for November 2020 compared to 1.3% for the same period a year ago.

This table from Zoopla shows the change in average house price for the year from June to November 2020.
Month Average price 3-month %
Annual %
Jun-2020 £217,500 0.3% 2.2%
Jul-2020 £218,800 0.7% 2.5%
Aug-2020 £220,400 1.1% 3.2%
Sep-2020 £221,900 2.0% 3.7%
Oct-2020 £221,800 1.4% 3.4%
Nov-2020 £222,900 1.1% 3.9%
The highest 3-month change in house prices is 2.0% for September and this has slowed in the last two months and Zoopla projects this will reach 5.0% for the year.

For remortgage buyers this higher house prices gives them the opportunity to release capital when moving to a new preferential rate to make home improvements such as a new kitchen or bathroom.

House price growth is mainly being driven by northern England with an average rise of 5.0% in the North West, 4.9% in Wales and Yorkshire & Humber.

There are strong rises in house prices for cities outside of the South East such as Manchester up 5.7% year-on-year to November, Leeds higher by 5.6%, Nottingham up 5.4% and Liverpool higher by 5.3%.

More demand for houses than flats

Buyers searching for houses have increased house prices by 4.3% during the year, more than double the rate for flats rising by 1.8% according to Zoopla.

This is due to the change in priority with more households working from home requiring more space such as an extra room for an office or with a garden and parking.

A survey by Zoopla shows that 44% of home movers are not influenced by the government’s stamp duty holiday and are focused on more space and better location.

The changing priority for households means buy-to-let investors may need to focus on property with more indoor and outdoor space to achieve higher rental incomes and yields.

For older homeowners living in a house rather than flat the strong rise in property values means the equity release buyer can access cash using a lifetime mortgage to spend on anything such as home and garden improvements.

Wealthy home movers are expected to have a higher share of sales agreed along with more first time buyers as lenders accept higher loan to values offering a strong start to 2021.

What are your next steps?

Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.

Learn more by using the mortgage monthly cost calculators, equity release calculator and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.

For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to help maintain your standard of living as costs rise.


Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%
1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%
1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%
1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%

The latest mortgage news

26 Feb 2021

Stamp duty holiday extension likely as 100,000 buyers will miss deadline

About 100,000 buyers already agreed to complete will miss the stamp duty holiday deadline leading many to expect an extension.

08 Feb 2021

First time buyers are not deterred by rising house prices

Transactions bounced back strongly for first time buyers in the second half of 2020 despite a 10.0% rise in house prices.

04 Feb 2021

Stronger demand from buyers sends house prices higher

Rapid start to the year as buyer demand increases 13% across all regions and new house prices highs despite the third lockdown.

29 Jan 2021

Recovery for equity release with low cost mortgages and pent-up demand

Pent-up demand for equity release and falling interest rates has seen a recovery in plans taken out after slowdown during the first lockdown.

Call for your free quote 0800 955 0058


    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.


    Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.


    9th Floor, 30 Crown Place
    London, EC2A 4EB

    0800 955 0058


    London City Mortgages Limited is a registered company in England & Wales under company number 09278987. London City Mortgages Limited is an Appointed Representative (FCA no. 655965) of Blackstone Moregate Limited (FCA no. 459051) which is authorised and regulated by the Financial Conduct Authority. LCM and LCM Equity Release are trading names of London City Mortgages Limited.

    2021 © London City Mortgages.
    Website designed & developed by Spyre Media