28 Jun

Second steppers still need mum and dad bank

Second steppers still need mum and dad bank

Many people hoping to move up the property ladder are still reliant on the bank of mum and dad to purchase a new home.

Research from Lloyds reveals 32 per cent of "second steppers" need an average of £21,231 to move so turn to mum or dad or other family members to help. While 35 per cent cannot afford to move without help and 23 per cent have delayed starting a family so they can move to their second home.

Rising property prices means the average difference between a first-time buyer home and a second stepper property is now £126,000.

One in four second steppers expressed concern that it is harder to move up the property ladder than it is to step on it, with 65 per cent continuing to save after they purchased their first home.

"Parental support continues to play a vital role in helping young people to get on the property ladder. However, it is clear that despite improved conditions for this part of the housing market, second steppers will still rely on the bank of Mum and Dad,’ said Andy Mason, mortgage director at Lloyds Bank.

He added: "Without this extra financial support second steppers believe that they wouldn’t be able to make the next move on the property ladder for some time. However, it is encouraging to see many Second Steppers planning ahead by overpaying their mortgage and making bigger contributions into savings accounts to prepare for when the perfect home becomes available."ADNFCR-1222-ID-801837310-ADNFCR

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