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15th March 2017
So you’ve got your foot on the property ladder - but what happens next? Is the property market any easier to navigate for people who’ve already crossed the first hurdle?
This is the question that a recent survey from Lloyds bank posed to the UK’s ‘second-steppers’ - successful first-time buyers looking to make their next move.
The overwhelming response showed a lot of frustration and uncertainty about the property market, with 39% of second-steppers believing that selling a home in 2017 will be significantly more difficult than it was 12 months ago.
The good news is that these worries are mostly unfounded - the property market has actually significantly improved across the UK over the past 6 years, and shows no sign of slowing down.
Nonetheless, many second-steppers find their lives outgrowing their starter homes, and are concerned that their equity is insufficient to move on.
We don’t want anyone to feel held back from making their next move. To help inspire confidence in the property market, we’ve set out to show that second-steppers are far more likely to succeed in moving up the ladder than they think.
The report shows that 26% of second-steppers are worried about the uncertain economic climate in the lead-up to Brexit, while 29% are concerned about the cost of deposits. Meanwhile, 32% of second-steppers are struggling to find the right property.
The majority of these homeowners are young professional couples and new families, ready to increase the size of their homes or move to a new area in readiness for their next big steps in life.
We know that starting a family is no small investment in itself, so we’re keen to show second-steppers there’s no time like the present to take the plunge, put their houses on the market, and take advantage of our local expertise to find their dream homes.
34% of potential second-steppers are now considering making improvements to their current homes rather than moving, which has an impact on the next generation of first-time buyers. The fewer starter-home owners who take the next step, the fewer starter homes will be available.
In order to keep the property market in a positive place for first time buyers and second steppers alike, we need to raise awareness about the options out there and support potential sellers in taking the plunge.
Contrary to popular opinion, the property market is more favourable to today’s second steppers than it was to them as first-time buyers.
The typical second-stepper bought their first home around 2012, at an average cost of £140,004. In comparison, the average first-time buyer property today costs £205,723. This would leave second steppers with an average equity of £105,068, taking into account house price growth, initial deposit and mortgage repayment.
This is a dramatic increase on 2012’s average equity of £23,643, and comes to around 32% of what an average three-bedroom second stepper home costs.
The report suggested that the average second stepper has a gap of £126,000 between the value of their current property and the cost of their ideal home. With this high average equity level, however, this gap could be reduced by up to 83%, meaning that only £21,000 would need to be added to an existing mortgage.
That’s not to mention that UK mortgage rates are at a record low this year, and home affordability is steadily improving. All in all, second-steppers dream homes are closer than they think.
If you’re a second stepper, your future on the property ladder is brighter than you think. With the right estate agent on your side, you can get a better feel for your local property market and put your house on the market with confidence, knowing that we’ll take care of everything from mortgage advice to helping you find the perfect second-stepper home for your budget.
If you’re on the fence about taking the next step on the property ladder, contact our local property experts today for a free valuation of your property, independent financial advice, and a friendly discussion of your second-stepper options.
At Maslen Estate Agents Ltd, we put people before profit. That means using our expertise to find the right home, or the right buyer, for you – our customer. For sellers, we use our unrivalled knowledge of the local area to ensure your property goes for the right price, to the right person. Our completion rate is one of the highest in Brighton & Hove thanks to our agents being some of the longest serving in the area. We know how complicated selling a home can be, so we offer plenty of advice on the selling process and making the most of your property. And we can provide a free, no obligation market appraisal. For buyers, you can browse houses for sale in Brighton and Hove and flats for sale in Brighton and Hove to find properties that suit any budget. Our handy buyer's guide will tell you nearly everything you need to know about buying property, and we'll be there for everything else. We're dedicated to finding the perfect home for you, taking you through the entire process – from viewing to completion.
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