Second step on housing ladder 'can be harder than first'
August 29, 2017
Getting a mortgage to take the first step on the housing ladder has proven notoriously difficult for many would-be first-time buyers in recent years, but for many the problem is making the next move.
A study by Lloyds Bank found a quarter of 'second steppers' have found taking that next move harder to accomplish than buying their first home. Around 52 per cent of those living in their first home who have planned to move in the past year have been unable to do so because of issues like the cost of stamp duty, increasing moving costs and the problem of finding the right home.
In addition, 39 per cent say it has been harder to sell their home this year than it was 12 months ago, due to the slowing of the property market.
Low savings rates have also been a part of the problem, with 56 per cent of second steppers taking longer to build up the cash reserves they need for the mortgage. Such is the impact of this on those living in their first home that 23 per cent have delayed starting a family to free up cash and 12 per cent now plan to have fewer children.
Other responses include 13 per cent seeking to change their career to produce the necessary salary increase that makes a second step move affordable.
Mortgage product director at Lloyds Bank Andrew Mason 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."
Finding new homes may get a bit easier in the coming months, after government housebuilding figures released last week showed the number of new properties being built has increased to the highest levels since 2008.
This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.