Second steppers targeting detached properties
The research from Lloyds Bank revealed 54% of second steppers stated they would be looking to next move to a detached house, now the most preferred option, with semi-detached properties reducing to 51%.
In 2010, 60% said that they were looking to move to a semi-detached house, with 48% also saying detached properties would be an option.
Well over a third (37%) have increased their monthly savings in the last year, and 41% are overpaying their mortgage.
As a result, the proportion of people concerned about the size of the deposit they require to move also fell in the last year, from half (50%) of second steppers in 2013, to 37% in 2014.
The findings showed people living in their first home have to find an extra £58,400 to plug the gap between the sale price of their current property and the cost of the house they would ideally move to. This figure has significantly risen by £14,900 since 2013 and £17,900 in 2012, when the figure was £40,500.
Fees and charges associated are still seen as the biggest barrier to moving home for nearly half of second steppers (46%).
Andy Hulme, mortgages director at Lloyds Bank, said: “They’ve realised that they need to be savvy with their money, with more second steppers saving more each month and overpaying on their mortgage. Higher levels of equity and larger savings pots are allowing them to put more down in deposits, helping them make this big jump up the ladder.”
As a result second steppers are spending 19 months longer in their first property than they expected as they continue to save and build up equity. The average second stepper spends four years and five months in their first home.