Can't move? Improve: More home owners are choosing to renovate as would-be upsizers are trapped by slowing property market

The difficulty of upsizing is encouraging many homeowners to renovate or extend their homes, rather than move house, according to a new report from one of Britain’s biggest banks.

The number of people moving home in 2017 fell to 367,000, less than half the 705,900 seen 10 years ago and one per cent lower than in 2016.

Three in five homeowners feel that moving house has become more difficult over the past 10 years according to the Lloyds Bank research, although a quarter plan to move within the next five years.

However, so-called “second steppers” or upsizers are struggling to afford the next step on the housing ladder.

“The combination of the increased cost of moving and a lack of fresh stock coming to the market appears to be making it harder to move and we have seen more homeowners staying put and looking to add value to their homes instead,” said Andrew Mason, mortgage products director at Lloyds Bank.

According to the latest figures from Rightmove, the leap between the average first home in the capital and the next step is £200,000, with the average second home in London priced at £658,000.

At the same time, wages have stagnated, meaning that many would-be second steppers are unable to access a mortgage for significantly more than they are currently borrowing.

In addition, the high cost of moving is a crucial factor in the decision to stay put, with 22 per cent of homeowners citing it as the key blocker to buying their next home.

Stamp duty is one of the biggest expenses for non-first-time buyers in London. The most recent figures from the Office for National Statistics found the average London home cost £484,000, making the buyer liable for an additional £14,200 of stamp duty.

Another 20 per cent of current homeowners say they are struggling to find a suitable home within budget as many sellers are yet to adjust their price expectations, while empty nesters – also put off by moving costs and lack of suitable next homes – are staying put in the family home, constricting supply even further.

There are signs that London sellers are adjusting their price expectations in line with buyers’ affordability limits, with Rightmove forecasting asking price rise of just one per cent in 2018.

While other barriers to moving remain in place though, the market for home extensions and renovations is expected to remain buoyant in the capital.

“The average UK house price will likely remain static across 2018, with punitive stamp duty levels and political and economic uncertainty weighing in on the residential property market,” said Nick Leeming, Chairman at Jackson-Stops.

“The escalating cost of moving house means home owners are more likely to stay put and renovate next year, when they might otherwise have moved, particularly with the interest rate rise rendering mortgage deals less favourable."

Are you one of the don’t move, improve brigade? Scroll through the gallery of London’s best home extensions and renovations this year for inspiration.