Almost two-thirds of first-time sellers want to move up the ladder but are unable, according to a report from Lloyds TSB.
Moreover, around 22 per cent say it is now harder to move up the ladder than it was to get on it in the first place.
Of the 500 interviewees who took part, 65 per cent cited raising a deposit as a serious obstacle, 53 per cent indicated a lack of affordable housing, 52 per cent were concerned with cost including stamp duty and 25 per cent are trapped by negative equity in their current homes.
Lloyds TSB mortgage director Steven Noakes says: “Despite recent improvements in the housing market, first-time sellers continue to be faced with some very real and tough challenges when trying to make their next move on the property ladder. 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.”
The report found that second steppers are staying longer in their first homes. In 2010, second steppers were expecting to spend four years in their first home. Today, homeowners in the same position now anticipate having to stay put for five years.
E.surv business development director Richard Sexton says: “Historically, FTBs could bank on a growth in equity which they could take with them to the next property and virtually bank on a lower LTV. With virtually no growth in house prices for some years, for the first time in a long time, this has not occurred and as a consequence, many are finding moving on more challenging as a consequence. Mums and dads who were previously breathing more easily once they’d helped the fledglings leave the nest, may be asked to dig deep once again by beleaguered offspring.”