Difference in price for second steppers in England averages over £75,000
Home owners moving from the first step of the housing ladder in England need to find an additional £75,388, on average, new research has found.
A study by online estate agents Housesimple using data from the Land Registry analysed the average price of a flat and terraced and semi-detached houses now compared to a decade ago in 100 major UK towns and cities.
It found that in 2008, the step-up in price from a flat to a terraced or semi-detached house was, on average, £37,225 but that has now increased by 102.5%, increasing by £38,000 in 10 years.
When detached properties were also included in the average price of a house, second steppers would be looking at an average cost of £133,122, to climb onto the next rung of the property ladder.
If the gap between the first and second rungs of the property ladder continues to widen at its current rate, by 2028, second steppers could be looking at an average £150,000 to jump up to the next rung, it suggests.
Durham is the best area of the country for second steppers, with the difference between the first and second rungs of the property ladder at £23,318 while London is the worst city for with the average price differential at £343,134.
After Durham the next smallest increase is in Nottingham at £23,318, followed by Stoke-on-Trent at £27,027, Blackburn at £28,207, Middlesbrough at £29,172, Doncaster at £29,297, Bradford at £29,418, Oldham at £29,897, Hull at £30,380 and Liverpool at £31,011.
After London the next biggest gap for second steppers is in St Alban’s at £218,538, followed by Cambridge at £181,964, Oxford at £175,659 and Guildford at £145,381, with the figures clearly showing a North/South divide.
‘While we’re seeing a positive trend with more first-time buyers getting onto the property ladder, second steppers still face a major jump to transition from a starter home to their family home,’ said Sam Mitchell, Housesimple chief executive officer.
‘Despite Government commitments to building more stock, family homes remain at a premium. The problem is particularly acute in London and the South of England. As a result, second steppers migration from London has always been a major driver of house price inflation in commuter towns in the Home Counties and increasingly as far afield as areas of the South West,’ he explained.
He pointed out that homes in the North are still more affordable. ‘With healthy local economies in northern cities like Leeds, Sheffield, Liverpool and Manchester, job opportunities are attracting home owners who are looking for a fresh start, a better quality of life, and being able to buy a family home,’ he added.