Homeowners trapped on first rung of the property ladder

October 26, 2014 by Brendan O'Neill

Mortgage Advisors

In a recent study, Lloyds has revealed that homeowners looking to buy their next place are, on average, hit with costs of just under £60,000.

The findings show that thousands of people are currently stuck in their first properties, having outgrown them, but are unable to upsize.

Referred to as ‘second steppers’, they now need to find an amount equal to double the deposit they initially saved for their first house. Analysts believe this shows that it is actually more expensive to move up the property ladder at the moment, than it is to simply get on the first rung.

Another impacting factor is the price of stamp duty, according to Lloyds. This caused the Government to face criticism, as it did not increase the thresholds for stamp duty when house prices were soaring.

In overview, this means that as ‘second steppers’ cannot afford to move, they are residing in the homes that first-time buyers are looking to purchase – meaning that the market could potentially grind to a standstill.

A professional mortgage adviser who has completed their CeMAP training in Liverpool, Manchester, and other major cities would be best placed to give the appropriate and most suitable advice to those who are looking at moving home. The training and support afforded to those in this profession means that their customers would take assurance in their competence and ability to offer the best advice.