No fewer than 44 per cent of ‘second time’ buyers have no plans to save for a deposit to buy their next home because they believe the equity in their current property will pay for their deposit.
However the growth in house prices has outpaced the growth in the prices of flats over the last 10 years, potentially leaving buyers short when they look to move up the ladder according to research by uSwitch.
The widest growth disparities between house price appreciation and flat price appreciation is seen in Preston (16.5 per cent), Colchester (10 per cent) and York (nine per cent says the company.
Over the past decade, British house prices for terraced, detached and semi-detached properties have shot up by an average of 21 per cent while flats have increased by only 15 per cent over the same time period - uSwitch claims that ‘second steppers’ currently living in flats therefore may face a significant deposit deficit when they buy their next home.
“Second steppers have been lulled into a false sense of security by rising house prices. In some parts of the country houses have far outstripped flats and so if you are looking to move up the property ladder you need to carefully plot your next steps” says a spokeswoman for the firm, which is owned by Zoopla Property Group.