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More second-time buyers require financial support from parents

Adam Williams
Written By:
Adam Williams

One-in-five second-time buyers are looking to their family for financial support as the cost of moving up the property ladder continues to increase.

The survey by Lloyds TSB found that 55% of these second steppers believe they do not have a big enough deposit to move to a new property.

The bank said that 16% of second-time buyers were looking for support from friends or family and required £19,216 in financial support, compared to £13,700 for the average first-time buyer.

Almost two-thirds of potential home movers have been unable to do so, with struggles finding suitable or affordable property proving major obstacles.

The cost of moving up the property ladder has increased in every English region apart from Greater London in the past 12 months.

Marc Page, mortgages director at Lloyds TSB, said: “We already know that second steppers face a number of tough challenges, and in many ways have been the hardest hit by the subdued housing market, so it is unsurprising that they are struggling to fund the gap needed to trade up to their preferred second home.

“Parents have long been helping to fund their children’s first home, but many are now having to provide further support as they move up the ladder. This indicates that these customers still need further support.

“To achieve a sustainable housing market we need to see movement throughout the market. If second steppers get stuck on the first rung, movement at the bottom half of the ladder comes to a standstill.”