9 Jun

Positive outlook for second steppers

Positive outlook for second steppers

The UK's 'second steppers' are in a strong position, according to new research.

A study by Lloyds Bank discovered that those wanting to take the next step on the property ladder are no longer in negative equity due to increasing house prices and a surge in first-time buyers.

Although many face a £128,000 gap to move to their next home, it would appear 33 per cent of second steppers believe it will be easier to sell their properties over the next 12 months, with 37 per cent planning to move in the very near future.

In recent years, many people have found themselves limited to starter homes, with little chance of moving on to a larger property, especially during the economic recession.

However, a rise in the value of homes means 71 per cent have experienced an improvement in equity levels, as many were purchased during 2009 when prices were at their lowest.

This means the average second stepper now has an average equity level of £87,096 - equal to 29 per cent of the average second stepper home costing £304,963.

Andy Hulme, Lloyds Bank’s mortgages director, explained: "We are now finally seeing a much needed boost to this vital part of the housing market, enabling more second steppers to make the next move on the housing ladder.

"Whilst challenges remain as second steppers try to bridge the gap to the next rung on the ladder, a steady rise in property values in 2015 should further ease the constraint on many and this will have a positive knock-on effect for the whole of the housing market."ADNFCR-1222-ID-801790421-ADNFCR

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