Stuck in a rut: Two thirds of first time sellers unable to move up ladder
In December last year, senior partner, Eddie Goldsmith highlighted the importance the second-time buyer had on the property market. Two months on, recent figures from Lloyds TSB have shown just how much trouble this group is in.
According to research by Lloyds TSB, 61 per cent of second steppers are unable to sell their first home and move up the property ladder. Amongst the challenges are home affordability, negative equity, higher deposits, lack of buyers and the cost of moving.
In 2011, a second stepper needed, on average, a £60,670 deposit for their second home, a figure which has more than doubled in the last ten years, and with the typical first time seller in a negative equity position of £9,902, this collateral is made all but unachievable.
Stephen Noakes, Mortgage Director at Lloyds TSB, is fully aware of the impact these challenges could have on the market:
“It is vital that this group of home movers receive more support and attention as they play an intrinsic role in getting the housing market moving again.
“To achieve a sustainable housing market we need to see movement throughout the market. If second steppers get stuck on the first rung, movement at the bottom half of the ladder comes to a standstill and this bottleneck will not only restrict the supply of starter properties but will have a knock on effect across the whole of the housing market.”¹
Content correct at time of publication