A survey by Lloyds Bank has revealed that the average ‘first time seller’ requires very nearly £136,000 to bridge the gap between the typical sale price of their first home and the likely asking price of their next purchase.
Lloyds says today’s typical ‘second steppers’ bought their first property in 2014, when the average price of a so-called first time home stood at £167,137.
Based on the latest house prices figures, selling their home for the average first time buyer house price of £211,296 would provide them with an average equity injection of £85,877 for their next home. That’s grown from £68,629 four years ago.
The gap between the sale of their current property and the cost of their perfect home – usually a detached property – is now £135,985.
However, Lloyds says the average equity level of £85,877 can help reduce this gap by 63 per cent, meaning second steppers need add an extra £50,108 to their existing mortgage.
Across the country, there are significant regional variations in the size of this gap.
In Northern Ireland, people will need to find £73,499 extra to make the step to their desired second home. At the other end of the scale, people in London need £330,599 to make the jump.
Just over a third of second steppers questioned by Lloyds think it will be harder to sell their existing property this year than it would have been a year ago. In addition, over a quarter are worried about the uncertain economic climate and deposit size, while around one in four are struggling to find the right property to move to.