Back to bank of mum and dad for second steppers

Almost one in five ‘second steppers’ are considering going back to the bank of mum and dad to help with their next move.

The price differential between a typical first-buyer home and a second property is £43,000 – rising to £93,500 in the South-East. Over half (55%) of second steppers believe that they cannot afford to make the move without family help.

According to new research from Lloyds TSB out today, second steppers need family assistance even more than first-time buyers.

The average loan size first-time buyers received from family or friends reached almost £13,700, up £700 on last year. Yet the amount requested by second steppers to help them move up the ladder has increased by almost £7,000 in the past 12 months to reach £19,216.

The research highlights that almost two-thirds (61%) of second steppers have wanted to climb up the ladder in the past 12 months but have been unable to do so.

Over half (55%) do not have enough for a deposit, while over three-quarters (78%) are struggling to find a suitable or affordable property.

Marc Page, mortgages director at Lloyds TSB, said: “We already know that second steppers face a number of tough challenges, and in many ways have been the hardest hit by the subdued housing market, so it is unsurprising that they are struggling to fund the gap needed to trade up to their preferred second home.

“Parents have long been helping to fund their children’s first home, but many are now having to provide further support as they move up the ladder. This indicates that these customers still need further support.

“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.”

 

First Published in Introducer Today