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Not just first timers - many 'second steppers' need parental help to buy

New research suggests the Bank of Mum and Dad is now helping so-called ‘second steppers’ - existing owners moving up the property ladder - as well as first time buyers. 

Almost a third of existing owners think they will still rely on financial help from family and friends to move up the property ladder, according to a Lloyds Bank report. 

This will mean raising the deposit required for their next move by borrowing money not just from the Bank of Mum and Dad (17 per cent), but also grandparents (nine per cent) or even friends (six per cent). 

Of those who require financial help from their parents, 47 per cent believe that their parents have had to make sacrifices in order to help them move up the property ladder.

The bank claims the price difference between a typical first time buyer home and a Second Stepper’s ideal home – typically a detached property – is £126,000. However, the average equity level of £105,068 from the sale of their first home can help to reduce this gap by 83 per cent - leaving a substantial gap. 

The research also revealed that precisely 50 per cent also required help with the deposit on their first property. The average loan size first time buyers received from family and friends the first time around reached £21,512. 

Almost a quarter of first time sellers put off having children until they have sold their first home. First time sellers have stated that they will have children later in life than originally planned (23 per cent) or have fewer children than originally planned (12 per cent) whilst they experience the challenges that first time sellers face. 

Over half (56 per cent) said that the challenges had no impact on their social or personal circumstances while 13 per cent have had to, or will have to, change their career as a result.

Just under a third of Second Steppers said that not being able to find the right property remains the biggest issue that may delay the sale of their current property. Lack of affordable homes (26 per cent), the cost of stamp duty tax (24 per cent) and potential changes to interest rates (22 per cent) are other notable issues for this group of buyer.

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