New research has revealed that second steppers looking to move up the property ladder are finding it more difficult than getting on in the first place.
According to the latest Lloyds Bank Second Steppers report, a quarter of first-time homeowners looking to move up the property ladder find it harder than buying their first home (up 18%)
The rise of moving costs, stamp duty and difficulty in finding the right property has meant that more than half (52%) of those still living in their first home have been unable to move up the property ladder.
Low savings rates have also been a contributing factor and 56% of second steppers say that it’s taken longer for them to save enough to take the next step.
However, there are also challenges on the demand side, as they also report that that it’s harder to sell their current property now compared to 12 months ago (39%).
Due to the challenges involved, almost a quarter (23%) say that they’ll have children later in life than they had originally planned with 12% also saying that they will have fewer children. Some have said that they also had to change their career (13%) as a result of their challenge to move up in the housing market.
Andrew Mason, mortgage product director at Lloyds Bank, said: “Moving up the property ladder has become more challenging for Second Steppers in recent years. The rise in house prices and moving costs, along with how difficult it is to find the right property means that they’ve had to wait longer than anticipated or even put off their move entirely until the right property comes along.
“Second Steppers seem to be very clear on what they want from their next property and will stay put and improve their current home rather than make any sacrifices. Our research also shows that most homeowners think ahead and understand that it could take up to four moves in total to reach their ‘dream’ home.”
This is very true & I’m a good example. I’m an adult who managed to get on the ladder in a London zone 4 area in 2005 by buying a one bedroom flat. It’s been almost 12 years now and I’m still living in the flat, haven’t been able to start a family ( not mainly cause of the small flat but it’s part of the problem ). Although the flat has doubled in value, Brexit hasn’t really helped among other things. My flat has been online for sale since April 2017 ( priced below what it’s worth ) but still hasn’t sold. I look at the stock of properties coming onto the market for sale in and around London & the M25 and I shake my head, they’re either way too expensive, too far off, or just in very bad condition. An average 3 bedroom semi or even a terrace in London and the South East will set you back £400-425K.
Greed has eaten deeply into the fabric of the U.K housing industry and the government is not helping. The housing problem is affecting relationships and the future generally. Things have got to change soon. Thanks