Second Steppers need to find an extra £58,400 to fund the move to their second home – over double the average first time buyer deposit.
According to Lloyds Bank’s Second Steppers report, growing house prices mean there is an ever-widening gap for those making the move to the second step on the housing ladder.
Since 2013 the figure of £58,400 has risen by £14,900, and bv £17,900 in 2012, when the figure was £40,500.
However, across the country, there are significant regional variations in the perceived size of this gap. In the West Midlands, people will need to find just £21,000 extra to make the step to their desired second home. At the other end of the scale, people in East Anglia say they need £80,800 to make the jump.
Almost half (46 per cent) say the costs and fees associated with moving house is the biggest barrier to moving up the ladder. However, 40 per cent of second steppers think it will be easier to sell this year, almost double the figure of 2013 and treble that of 2012.
Rising prices good for second steppers?
Nationally, just over four in ten (43 per cent) second steppers say that rising house prices have had a positive impact on their situation and ability to move up the ladder. Those in Central London (60 per cent) felt this most strongly compared to just 24 per cent of those in the North East.
Across the UK, second steppers estimate that their current properties have seen a 20 per cent increase in value since they purchased their house, which is on average just over four years ago. In this time, second steppers estimate their property values have risen from £186,800 to £223,600 on average, and three quarters expect further increases in the next 12 months.
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