Growing families looking to move into a larger home cannot afford to do that in over 95 per cent of UK towns, according to new research from Experian.
In 265 of 276 towns, homeowners would face cost increases of 50 per cent or higher if they are to move into a three- or four-bedroom house from a one- or two-bedroom property.
The average price difference across the UK is 42 per cent, which means families would need to find an extra £70,000 on average to move up.
Experian’s analysis also shows that in over half of the UK’s towns and cities the current average family income would not even be enough to secure a mortgage on a one or two bedroom property. The same is true in over two thirds of the UK’s postal districts.
The property gap is widest in Scotland’s central belt, particularly around Glasgow, with the cost of a larger property at least double that of a one or two bedroom home in five locations – East Kilbride (123 per cent more), Clydebank (122 per cent), Paisley (114 per cent), Greenock (109 per cent) and Hamilton (100 per cent).
These towns are also home to the families with some of the lowest incomes in the country, the research found.
Outside of Scotland, other places with a surprisingly high cost of moving were Burnley and Abergavenny, where trading up costs at least double, most likely driven by a lack of modern high quality one or two bedroom houses.
Moving up the property ladder is cheapest in places such as central Manchester, Cheapside in London, and Stratford, where the average cost of three- or four-bedroom homes is as little as a quarter more than a one- or two-bedroom property.
Jonathan Westley, managing director of Experian’s consumer information services UK&I, comments:
“The current housing squeeze is not only impacting on first-time buyers, but also second-time buyers; often people who have growing families and need more space. For families in some locations this can mean a choice between staying put or moving to another area in order to move up.
“Getting that first foot on the ladder is an important step, but moving on to a larger home can be as challenging, particularly given the shortage of housing in some areas and the increased focus on affordability in mortgage lending rules. At Experian we try to help people get in shape financially so their credit report helps put them in a good position to secure a mortgage they can afford in order to move up, and at the best rates.”
