Most of us are concerned with getting our foot on the first rung of the property ladder, but the problems don’t let up even as we climb.
A recent report by Lloyds Bank revealed that 39% of homeowners looking to move to their second home believe it is harder now than it was 12 months ago.
While this doesn’t necessarily set alarm bells ringing, it does potentially mean lousy weather for the broader market, especially with continued pressure on our stagnant affordable housing market.
The report also revealed that these fears exist despite homeowners typically having more than £100,000 in equity, as per the figures at the end of 2016.
This is compared to the mere £23,643 of equity just four years before.
The research uncovered a lack of confidence in selling amongst this group, even though 45% of those surveyed felt that their equity position had improved over the last year.
So why are those looking to take the next step facing such difficulties?
What is a second stepper home?
A second stepper home is a property purchased after first home (or ‘starter home’).
It’s name reflects the second step on a (property) ladder its buyers are taking.
This type of home is typically more extensive and better suited to a growing family or changing lifestyle needs. It often offers more spacious and additional rooms and more land.
Buyers of second stepper homes usually seek more comfort, better locations, or other amenities that their first property did not provide.
Demand for second stepper homes
House prices have been rising year-on-year, and the sad fact is that most household incomes can’t keep up.
When you consider that mortgage lending has become much stricter and stamp duty continues to weigh heavily on financially stretched buyers, the problem is all too clear.
Now, we also consider that the demand for housing has been at its highest in 11 years. And according to the National Association of Estate Agents, the supply of homes continues to dwindle.
The latest data from the NAEA shows that during June 2015, there were an average of 439 property seekers per branch, the highest number since August 2004.
Demand is good; however, only 44 homes were on sale per branch during this period.
Ten buyers for every property on offer does not make for a happy purchasing environment.
Many buyers struggled to find a home and double their mortgages to secure a desirable property.
This has led to a lack of confidence among ‘second steppers,’ with 32% saying they struggle to find the right property and 26% worried about the economic climate.
Indeed, approximately one in three are considering staying in their property and investing their money into improvements rather than entering the moving process.
Of course, if these second-steppers are not moving up the ladder, that leaves even less space for those at the bottom, who are often the most vulnerable and in need of housing.
How this problem will be solved going forward is a convoluted issue and one that has inspired many varied solutions.
From £50,000 pre-fab houses to converting mansions and stately homes into affordable flats, it is clear UK politicians, developers, and policymakers must work hard to deliver a practical scheme to house its citizens.
Do you want to sell your house quickly and move into your second home as soon as possible? Contact our team to see how we can help you.
