Second time buyers (STBs) are finding it harder than ever to move up the property ladder, new research has revealed.
According to research by Lloyds TSB, the majority of STBs (61%) who want to move have been trapped in their first home for 12 months.
Affordability is the biggest challenge for most STBs, with 71% of respondents citing raising a new deposit as the key barrier to buying a new house.
Other obstacles include a lack of affordable property (35%) and a lack of offers from potential first-time buyers (32%).
Second steppers also cited moving costs and negative equity in their current homes as the other major deterrents.
Declining house prices have meant that many STBs find themselves in a position of negative equity, having bought at the peak of the market.
More than one in five (22%) second steppers believes it is now harder to move up the ladder than get on it in the first place.
"First time sellers are now faced with some very tough challenges when trying to make their next move on the property ladder and many are finding it more difficult than getting on the ladder in the first place," said Stephen Noakes, mortgage director at Lloyds TSB.
"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, and this bottleneck will not only restrict the supply of starter properties but will have a knock on effect across the whole of the housing market."
The research also revealed that almost half of respondents (49%) would like to see their mortgage provider offer new products to help them overcome some of these challenges.
"It is vital that this group of home movers receive more support and attention as they play an intrinsic role in getting the housing market moving again," added Mr Noakes.
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