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Market remains tough for home movers

Market remains tough for home movers

Category: Mortgages

Updated: 28/08/2012
First Published: 28/08/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Second-time buyers are experiencing a hard time as affordability and availability remain less than favourable.

Tough housing market conditions and continued economic uncertainty have seen the average second-time buyer's equity position account for just 5% of a typical home, compared to 44% in 2005.

This is worrying news for those looking to progress on the property ladder, particularly as the average home-mover deposit has increased from £36,280 in 2002, to £61,536 today, a rise of 70%.

Second-time buyers account for the smallest share of homebuyers since 2001.

Suren Thiru, housing economist at Lloyds TSB, said:
"It is clearly very concerning that the challenges facing those attempting to take their second step on the housing ladder are the toughest for more than a generation.

"This follows the significant decline in house prices over recent years and the subsequent erosion of equity among those who bought for the first time at close to the peak of the market."

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