“Second-steppers” trapped in cramped homes
Report reveals plight of generation who cannot move up property ladder
January 14, 2013
A new report by banking group Lloyds has highlighted the misery of so-called “second-steppers” who cannot afford to move into homes suitable for growing families. Not only are young aspiring first time buyers suffering from our broken house market, the previous generation are also struggling. The typical second-stepper is around 40 years old, has settled down, and is looking to upgrade to a home with enough space to comfortably house their growing family.
Crucially many of these people bought during the boom when house prices were typically 10-20% higher than they are today. As the report mentions this means that many are trapped in negative equity.
Nitesh Patel, housing economist at Lloyds, said: “Even though many of today’s second steppers won’t have bought at the height of the market, many are still going to struggle to make that move up the housing ladder.
“House prices have been falling or flat for the past four years. As a result, many are still in a very low equity position. The difficulties faced by aspiring second steppers are having a considerable knock-on impact on potential first-time buyers due to the resulting shortage of properties available on the market.”