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Second steppers look to Bank of Mum and Dad

Second steppers look to Bank of Mum and Dad

Category: Mortgages

Updated: 11/06/2012
First Published: 11/06/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Home owners hoping to make their second step on the property ladder are increasingly looking to the Bank of Mum and Dad.

Many first time buyers in recent years will have seen the value of their homes remain flat, or possibly even fall.

It means that those looking to move on may be facing a shortfall running into tens of thousands of pounds.

And research conducted by Lloyds TSB has found that one in six (16%) are considering going back to their family to ask for financial support.

Parents hopeful of helping their offspring trade upwards face a hefty bill, however, as the additional capital needed by second steppers to trade up currently stands at an average of £41,000; an almost 200% (194%) increase on the £14,000 that was required 10 years ago.

Two thirds of first-time buyers are currently living in flats (43%) or terraced houses (25%); with an average value of a flat at £148,502.

Meanwhile, over half hope their next move will be to a three bedroom house. The average price for a semi-detached house currently stands at £189,312.

"We already know that second steppers face a number of tough challenges, and in many ways have been the hardest hit by the subdued housing market, so it is unsurprising that they are struggling to fund the gap needed to trade up to their preferred second home," said Stephen Noakes, mortgage director of Lloyds TSB.

"Parents have long been helping to fund their children's first home, but many are now having to provide further support as they move up the ladder."

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