Second Steppers face challenges to go up a rung on the property ladder
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Second Steppers: The average cost of stepping on the next rung of the property ladder doubles to £75,388 in 10 years
? In 2008, the average price step-up from a flat to a house* in the UK was £37,225
? Today, the average price step-up from a flat to a house has more than doubled to £75,388
? By 2028, Second Steppers may have to find an average £150,000 to upsize to a house
? Durham, best city for Second Steppers, with the jump from a flat to a house just £23,318
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? London, not surprisingly, is the worst for Second Steppers, with a £343,134 step-up
Second Steppers need to find an additional £75,388, on average, to climb on to the next rung of the property ladder, from a flat to a house*, according to Land Registry data research by online estate agents Housesimple.
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Housesimple investigated the challenges faced by first-time homeowners looking to upsize, by analysing the average price of a flat and house (only terraced and semi-detached houses considered), today compared to a decade ago, in 100 major UK towns and cities, to see how the price differential has changed.
In 2008, the step-up in price from a flat to a terraced or semi-detached house was, on average, £37,225. Today, the price differential between the first and second rungs has more than doubled (102.5 per cent), increasing by £38,000, in 10 years.
When detached properties were also included in the average price of a house, Second Steppers would be looking at an average cost of £133,122, to climb on to the next rung of the ladder.
If the gap between the first and second rungs of the property ladder continues to widen at its current rate, by 2028, Second Steppers could be looking at an average £150,000 to jump up to the next rung.
Sam Mitchell, CEO of Housesimple, said: “While we’re seeing a positive trend with more first-time buyers getting on to the property ladder, Second Steppers - primarily those upsizing from a flat to a terraced or semi-detached house - still face a major jump to transition from a starter home to their family home. Despite Government commitments to building more stock, family homes remain at a premium. The problem is particularly acute in London and the south of England, where the gap for Second Steppers can feel more like a chasm. As a result, Second Steppers migration from London has always been a major driver of house price inflation in commuter towns in the home counties and increasingly as far afield as areas of the South West.
“Things look brighter for those living or heading north, where house prices, although on the up, are still in affordable territory. And with healthy local economies in northern cities like Leeds, Sheffield, Liverpool and Manchester, the wealth of job opportunities are attracting homeowners who are looking for a fresh start, a better quality of life, and buying a family home is not just a pipe dream.”
* Housesimple only looked at terraced and semi-detached houses in each town and city. Detached houses were not considered a realistic second stepper home.