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Even Second Steppers Need the Bank of Mum and Dad Posted: 13th November 2018
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Though it’s common for first-time buyers to have deposit savings topped up by the Bank of Mum and Dad when it comes to buying their first property, you may be surprised to learn that a third of ‘second steppers’ need financial help from parents too.

A report from Lloyds Bank found that those moving up the property ladder to their second, perhaps larger or more expensive home, struggled to do so independent of financial help from relatives.

How second steppers pull funds together

Over half couldn’t foresee their next move independently, receiving funds from family to the average sum of £19,824. 22% will mainly rely on parents to fund the deposit for their next home, with 13% asking grandparents and 6% even going to friends for help.When asked other ways in which they would fund their next move, second steppers mentioned using equity in their house (62%) and personal savings (39%) to help with the cost of a move. Second home buyers are also borrowing more, up £4000 on last year at an average of £25,450.

How parents find the finances

Supportive parents are freeing up cash for their kids by dipping into life savings (54%) or even selling up and downsizing their own homes (48%) to allow their children to relocate to a larger home. Two fifths will also re-mortgage, 29% will sell another property they own and just below a fifth (19%) would make sacrifices in terms of holidays and big purchases to make sure their children can fulfil their home ownership dreams.

Finances not the only issue

Though the financial hurdle is still apparent, second stepper house hunters face other obstacles, mainly a real lack of available and affordable homes. Just over a quarter of those asked said they have struggled to find the right home for them, with 6 in 10 saying this has prevented them from making a move for the past year.

Second steppers have had to make sacrifices in other areas too, including when it comes to family planning. 28% of respondents said they will now have fewer children than planned – a rise of 16% on last year. Those asked also spoke of delaying having family due to this climate.

Things are picking up?

Though it has evidently been a tough spell for those less established on the housing market, the future is beginning to look more positive as the market looks healthy and people’s finances are generally less stretched, allowing more room in the household budget for savings. 40% of respondents believed that conditions have generally improved on last year, allowing them to realistically plan for the future and aim for more financial independence. In fact 67% are now making regular payments into a saving account, up from 61% last year, and many are increasing their mortgage repayments in order to clear this debt faster, 47% up from 41% in 2017.

Second steppers key to a healthy housing market

The fact that first-time home owners are increasingly feeling less of a financial burden and are able to save and realistically plan for the future is encouraging for the housing market overall. The more second steppers making a move, the more homes that are ideal for first-time buyers are freed up, meaning more home owners overall and a healthy housing market for the future.


Whatever your reason for moving; whether it's for extra space, to downsize or you may simply have found your dream home, Nicol can help. Our knowledge of the local property market helps us develop a marketing plan that's right for you and your property.
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