Almost one in six, some 14%, second steppers in Scotland is considering asking their family for financial support to make their next move on the housing ladder.
The price difference between a typical first time buyer home in Scotland, usually a flat, and the house desired by many second steppers has more than doubled over the past decade.
Almost a third, 31%, of second steppers in Scotland believes a shortfall or lack of a deposit will impact the purchase of their new house.
A recent Bank of Scotland report highlighted that over two thirds, 65% of second steppers in Scotland have wanted to climb up the ladder in the past 12 months but have been unable to do so as they face an increasing number of challenges.
However, the latest research indicates that one of the main challenges is a shortfall or lack of a deposit, with 31% of all those questioned agreeing that not having enough saved to cover the deposit is preventing them from taking the second step on the property ladder.
The majority of second steppers in Scotland will be hoping to use savings or equity in their current property to fund the move to their second property. However, almost one in six are also considering going back to their family to ask for financial support.
The research revealed that two fifths, 46%, of first time buyers in Scotland received help from someone for the deposit on their first property, with almost 90% asking for support from their parents.
The average loan size first time buyers in Scotland received from family or friends the first time around reached almost £13,000 and many are now looking for a further £10,000 to help them move up the ladder.
The additional capital needed by second steppers in Scotland to trade up currently stands at an average of £18,462, more than double the £8,597 that was required 10 years ago.
Two thirds of current first time buyers are currently living in flats or terraced houses with an average value of a flat at £106,587. Meanwhile, over half hope their next move will be to a three bedroom house. The average price for a semi detached house currently stands at £125,029. This means that those looking to make this move face a 17% premium just to trade up, before adding on the cost of moving or the fact that there may be an equity shortfall in their current property.
Since 2001, for someone who already owns a home the average cost associated with moving rose by 69% from £4,125 in 2001 to £6,972 in 20111.
‘We already know that second steppers in Scotland face a number of tough challenges, and in many ways have been the hardest hit by the subdued housing market, so it is unsurprising that they are struggling to fund the gap needed to trade up to their preferred second home,’ said Laurence Mann, head of mortgages, Bank of Scotland.
‘Parents have long been helping to fund their children's first home, but many are now having to provide further support as they move up the ladder. This indicates that these customers still need attention and support. To achieve a sustainable housing market we need to see movement throughout the market. If second steppers get stuck on the first rung, movement at the bottom half of the ladder comes to a standstill,’ he added.
