First Time Buyer
First-time home sellers fear tough 2018 property market
So-called second steppers are also worried about the rising interest rate climate, and see this as the biggest challenge to moving up the ladder, the report by Lloyds Bank has found.
The sellers cited fears over the economy and a shortage of family friendly homes as further barriers.
However, thanks to rising house prices, first-time owners have gained since 2014 an average equity stake of £85,877 to help them make the next move.
The typical gap between the sale of their current property and their next ideal home is £135,985 – meaning second steppers need an additional £50,108 added to their mortgage for the move, according to Lloyds.
However, there are significant regional differences. In London sellers trading up face a gap of £330,599, while in Northern Ireland it stands at £73,499.
However, two out of five sellers believe the market conditions has improved compared to last year with more first-time buyers in the market.
Andrew Mason, Lloyds Bank mortgages director, said: “Second steppers are optimistic about the market conditions, which are now better than they’ve been for over five years, and with many building up substantial equity in their homes and more first-time buyers entering the market, their next move may not be far away.
“However, the interest rate rise we saw late last year marks the first increase first-time sellers have seen since becoming homeowners, and even though it was small it has caused some concern.”
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