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Cost of moving home 'rises £50,000 in just five years'

Home movers have paid more than £50,000 extra on average in 2015 to take their next step on the property ladder, a report has found.

Northern Ireland is the only place in the UK where property prices have fallen. Credit: PA

The average price paid for a home in the first six months of the year by those taking the next leap was £261,524, according to the Lloyds Bank Homemovers Review.

This was 25%, or £52,870, more than the typical home mover paid in 2010, when the home they were moving into had a price tag of £208,654.

In London it is even higher - costing 45%, or £153,535, more for a property than five years ago, with homes in the capital now costing £492,882 on average.

Northern Ireland, where house prices still have some way to go to recover to their pre-financial crisis levels, is the only region of the UK where a home mover would pay less for a property than they would have done five years ago, with a 7% fall.

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Mortgages likely to go up despite Bank rate freeze

The interest rate freeze does not mean the cost of mortgages will not increase, a mortgage broker has told ITV News.

Jonathan Harris said a gradual increase in swap rates could lead to mortgage rate rises.

He said: "We will continue to enjoy historically low mortgage rates but they will still increase because the markets where lenders buy money in from the rates are gradually increasing and so the cost of money for the lenders is more expensive and they will have to pass that on to the consumer."

Carney: Time for interest rate rise 'drawing closer'

Mark Carney said the increased speculation about interest rate rises was a "welcome sign that the economy is returning to normal".

The Governor said the time for a rate rise was "drawing closer" but any decision would be "data dependent".

He said: "The exact timing of the first move cannot be predicted in advance."

Bank of England predicts inflation will remain at zero

Today's report could dampen expectations that an interest rate hike could come as soon as the end of this year. Credit: PA

The Bank of England forecasts inflation will hover around zero for the next few months, with the potential for again turning negative as it did briefly earlier this year.

This reduces the need to hike interest rates now to keep inflation from overshooting its 2% target, although one member of the Monetary Policy Committee, Ian McCafferty, voted to increase rates by 0.25% to 0.75%.

Today's report could dampen expectations that a rate hike could come as soon as the end of this year.

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