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Second Step Home Buyers Still Need Asked Parents To Help Fund Their Second Home

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Home owners trying to take their second step on the housing ladder have seen their trading up costs more than double over the last decade. One in five would-be "second steppers" surveyed by Lloyds TSB said they might need to rely on the "Bank of Mum and Dad" or even grandparents to help them plug the gap. The price difference between a typical first-time buyer flat and a second stepper semi-detached home has reached £43,800 across England and Wales, soaring by 143pc from £18,000 10 years ago. The gap has increased by £3,000 over the last year, Lloyds said. People in the South East face the biggest premium to take their second step on the housing ladder, needing almost £94,000. Londoners face the second highest at around £64,000. The smallest costs to climb the second rung of the property ladder were found in Wales, at £14,000 typically. Three-quarters of second steppers said they plan to use the equity in their first home to help fund their move, while three-fifths will plunder their savings. Some 18pc said they were considering asking family members to help them out financially. Second steppers thought they would need to borrow more than £19,000 typically from family or friends, compared with around £13,000 when similar research was carried out a year ago.

Many second steppers bought their first home around the height of the property boom, meaning that they might have struggled to move on as they have little or no equity left in their property. Link

With real terms fall in wages the crash is not far away.

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I'd love to make that second step. Not with a £150k+ debt though where the local median wage is < £19,000!

Unfortunatley speculators care not a jot for excess debt (espeically when it's near 0%). Second steppers will join the FTBers in being replaced by the BTL/Investment 'buyers'.

Edited by PopGun

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The elastic ladder that never twangs back.

Although I notice where I am everything is being bid up at the bottom and down in the middle. Competion among buyers strong at low levels and value nonexistent.

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The elastic ladder that never twangs back.

Although I notice where I am everything is being bid up at the bottom and down in the middle. Competion among buyers strong at low levels and value nonexistent.

When the money given is free, who needs value? ;)

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Boomers are sitting on 80% of the nations property 'wealth'.

Attrition by death will reset the balance.....if.....politicians don't open the doors further for overseas buyers of said housing stock!

Good luck with that.

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These second-steppers will be the ones who were missold 100%+ mortgages to pay bubble prices last decade.

I guess they're in competition with today's FTBs, who are shunning FTB flats and moving straight from rentals to the second step. Or in the case of one or two over-entitled HPCers, will accept nothing short of the average house as adequate!

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These second-steppers will be the ones who were missold 100%+ mortgages to pay bubble prices last decade.

I guess they're in competition with today's FTBs, who are shunning FTB flats and moving straight from rentals to the second step. Or in the case of one or two over-entitled HPCers, will accept nothing short of the average house as adequate!

Well Oh Great One,

When can one expect an average house?

Second time buying is the reason I joined HPC. My next turn will be a 3rd time decision.

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These second-steppers will be the ones who were missold 100%+ mortgages to pay bubble prices last decade.

I guess they're in competition with today's FTBs, who are shunning FTB flats and moving straight from rentals to the second step. Or in the case of one or two over-entitled HPCers, will accept nothing short of the average house as adequate!

Unless you're from the Bob Loblaw school of HPInomics, it stands to reason that if a person doesn't buy a place until they are ~40 with a couple of kids in tow, they ain't going to be looking at 2 bed flats, are they?

My strategy is 4 bedder or bust, as it happens, for the simple reason that buying a 3 bed and then discovering it is too small and trying to offload at the price you paid a few years ago seems to be a common situation from my RM searches. I'd much prefer to be competing against those with little/no/negative equity for a bigger place rather than trying to negotiate a discount on a 3-bedder from people trying to trade up in the face of some sob story about equiteee requirements and nasty banks.

Besides, there are plenty of good 3 bedders available to rent for the same reasons- accidental LLs etc. Why buy a 3 bedder for ~£200k if you can rent it for under £800/month?

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These second-steppers will be the ones who were missold 100%+ mortgages to pay bubble prices last decade.

I guess they're in competition with today's FTBs, who are shunning FTB flats and moving straight from rentals to the second step. Or in the case of one or two over-entitled HPCers, will accept nothing short of the average house as adequate!

From my "Are the British Mad?" Thread:

Orlando versus Northampton:

£115K

http://www.rightmove.co.uk/property-for-sale/property-42078899.html

7303_132667129A_hu8448_IMG_01_0000_max_620x414.JPG

£110K

http://www.rightmove.co.uk/overseas-property/property-39277792.html

96892_96892_G4692003_IMG_00_0000_max_620x414.jpg

Who has a sense of entitlement, the seller or the buyer.

The UK property market is dead until prices correct.

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Unless you're from the Bob Loblaw school of HPInomics, it stands to reason that if a person doesn't buy a place until they are ~40 with a couple of kids in tow, they ain't going to be looking at 2 bed flats, are they?

I could only dream of 2-bed flats at 40 (and I'm not even a Yorkshireman).

But my comment on the 'entitled' is those who expect an 'average' house in their 20s. Or rather, are aggrieved by it not being easy.

My strategy is 4 bedder or bust,

Fine. That's the kind of rising expectations that have pushed house prices up over the generations.

Besides, there are plenty of good 3 bedders available to rent for the same reasons- accidental LLs etc. Why buy a 3 bedder for ~£200k if you can rent it for under £800/month?

Indeed, the vast improvements in rentals have taken away the main pressure to buy. Hence the mainstreaming of straight-to-second-step.

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I could only dream of 2-bed flats at 40 (and I'm not even a Yorkshireman).

But my comment on the 'entitled' is those who expect an 'average' house in their 20s. Or rather, are aggrieved by it not being easy.

Fine. That's the kind of rising expectations that have pushed house prices up over the generations.

Indeed, the vast improvements in rentals have taken away the main pressure to buy. Hence the mainstreaming of straight-to-second-step.

I've wondered about my desire for a 4 bedder, as plenty have brought up familes in 3 bed semis. I think it would be a luxury, no doubt, but it's also the case that people probably have more family and friends who live further away these days, and the desire to be able to accomodate overnight visitors is probably more common. It's true for me and the wife at any rate, and definitely has played a part in my plans/aspirations.

Nothing to stop me renting a 4 bedder either of course, to see if it's really necessary.

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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