Second step on housing ladder is a step too far

The gap between the first and second rungs on the housing ladder in Scotland has more than doubled over the last decade, according to bank research.

The average additional capital needed by “second steppers” is now £18,462, more than double the £8,597 of ten years ago.

A recent Bank of Scotland report found two-thirds of aspiring second steppers were unable to move in the past 12 months.

New research by the bank suggests a shortfall or lack of a deposit is a key challenge for almost a third (31 per cent).

The majority hope to use savings or equity (65 per cent) to fund the move but one in seven (14 per cent) are contemplating turning to their parents.

Almost half of people got money from friends or family towards a deposit on their first property, although the vast majority (90 per cent) got money from their parents.

The average first-time buyer received £13,000 from family and friends for their first home, and some are now looking for a further £9,063 to trade up.

Out of the first-time homeowners involved in the research, 68 per cent live in flats and 14 per cent live in terraces, with the average flat valued at £106,587. The average price for a semi-detached house is £125,029.

Laurence Mann, head of mortgages at the Bank of Scotland, said: “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.

“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.

“These customers still need attention and support.”