Seconds Out, Rung 2 - Moving up the property ladder is a real tough bout!
In an earlier article, I said that interest in the housing market in the UK is often only concerned with the problems facing the first-time buyer. However, according to recent surveys, it seems that, making progress to the second rung of the property ladder can be just as difficult.
Generally, people who are looking to move onto that second rung are couples and young families who are moving on from their first-time buyer, 2 bed property, to houses that offer more in terms of living space both indoors and outdoors.
According to an article by Zoopla and a survey by Lloyds Bank nearly a quarter (23%) of first-time homeowners looking to climb to the next rung of the property ladder, claim that they find that this move is even more difficult than when they were first trying to get on the property ladder!
Of those who completed the survey, over a third (35%) said that they would delay starting a family because of the difficulty in moving home.12% might consider limiting the number of children that they had previously planned to have. 13% said that in order to purchase the home of their choice they had been forced to change location and even change their career.
So, what are the issues facing these second time buyers?
39% of those surveyed felt that the demand for buying houses was slowing, and, it had become more difficult to sell their home compared to this time last year. Though of these, only 9% said that they were prepared to lower the price of their property to entice more potential buyers.
More than half of those who took part in the survey complained that low interest rates were making it difficult for them to save, and that had prohibited them from taking that second step.
Other participants in the survey were unhappy at the cost of stamp duty (which becomes payable on homes over £125,000), in addition to the other moving costs which come into play.
All of these pressures which it appears have come together in the current housing market, have left 52% of would be second time buyers remaining in their homes!
Where do second time buyers want to move to?
The majority of second time buyers are looking to upsize, and to move to what they deem is a better location. The majority say that their dream property is a detached four-bedroom house with a garage, driveway and an open plan living area, near good schools, employment opportunities and leisure facilities. The developers currently building new homes in our local area certainly seem to be building to this specification!
Of these second time buyers however, just over a quarter (28%) said that they wouldn’t compromise on the ‘must have’ features that were essential to them when purchasing their next property.