Quarter of second steppers think they’ll need a gifted deposit to move up property ladder
Recent research has revealed that one in four people looking to move up the property ladder expect they’ll need a gifted deposit in order to do so.
This is according to the findings from My Home Move, which analysed the moving habits of over 1,000 homeowners. In addition to expecting to need a gifted deposit themselves, the results also revealed that 30% of so-called second-steppers expected to gift money to a relative in order to help them onto the property ladder.
Whilst some are looking to move up the housing ladder, the research revealed that this is not the case for everyone. In fact, 14% of second steppers stated that they had no intention of moving again prior to retirement, with a third stating that if they were to move, it would be because they wanted a larger property.
Commenting on the research was Doug Crawford. The CEO of My Home Move stated: “When people talk about the housing market, all too often they think of first-time buyers and occasionally downsizers; but rarely do they think about those already on the housing ladder – and this is wrong. Second steppers and middle movers, those who already own their first, second or third properties, are the ones who possess the majority of Britain’s housing stock; and so to better understand them, we believe, provides a greater insight into the challenges the market faces as a whole.
“Possibly one of the most telling results from our survey is that even when someone enters the market, there is no guarantee they will be able to raise enough capital to keep climbing the ladder. For second-steppers in particular, needing a gifted deposit to take the next step may be holding them back from moving on, keeping thousands of properties off the market for would-be first-time buyers.
“But most worrying of all is that this situation has become an expectation for many, as over a third (34.9%) of all those surveyed said that they anticipate that they will need to gift money in the future, to help the next generation buy a home.”
As well as highlighting the variance of personal circumstances, he went on to acknowledge the stamp duty change, stating that it’s been to the benefit of the first-time buyer market.
“Very often people’s personal circumstances change far quicker than is expected, and as property professionals, it is our job to provide products and services which go beyond the ‘one size fits all’ approach. The Autumn Budget attempted to provide a lifeline for first-time buyers, thanks to the abolition of Stamp Duty for them on properties up to value of £300,000; but we urge the Government and future policy makers to view the housing market as a whole, and consider creating policies which impact positively on all homeowners, not just those at the bottom of the ladder.”