According to a report by Lloyds Bank last week, it’s much harder to move up the property ladder than jump aboard it in the first place, the Telegraph reports. Are you a “second stepper” who’s finding it hard to climb up onto the next run?
Lloyds data claimed that these second steppers need to find an additional £58,400 to cover the difference between the sale of their first property and the cost of the home they are hoping to move to. This works out as over double the average deposit for first-time buyers: £25,900.
The bank reports that this gap is increasing as the years go by; it’s £18,000 more than it was in 2012 and £15,000 more than last year.
However, is it really true that purchasing a first home is easier than upsizing?
A typical first-time buyer is in their 20s or 30s, and saving the best part of £26,000 is difficult for most people, especially when the average wage in the UK stands at £28,000, and is usually much less for younger employees.
According to Halifax, it would take a would-be buyer over 14 years to save a deposit of this amount, as the average amount people can put away is £137.72 a month.
Second steppers, however, are likely to be older and have double incomes and higher salaries. The Telegraph claims that it’s also much easier to keep up-to-date with property price rises when you already own your own home.
But who do you think has it tougher? And are extortionate estate agents’ fees putting you off buying your first/next home? If so, consider using eMoov – the UK’s largest online estate agents.