Second-steppers 'still need Bank of Mum and Dad'
Every estate agent will be familiar with the concept of the "Bank of Mum and Dad", by which parental help is often the key factor in helping first-time buyers raise the cash to afford a deposit and get on the housing ladder. However, it seems this assistance is often needed well beyond the first step on the housing ladder.
New research from Lloyds has shown 32 per cent of 'second steppers' have sought extra help, with the average amount of support standing at £21,231. Of those getting help, 19 per cent received it from their parents, while nine per cent were aided by grandparents and six per cent by friends. This compared with around 50 per cent needing help to buy their first home.
The poll also found that 35 per cent said they could not take the next step on the ladder without parental support, which suggests that another three per cent receive some other form of financial help.
As well as the previous generation, the next one is also a factor in house moves, with 23 per cent of buyers putting off starting a family until they have moved.
The survey found the gap in value between the average first and second homes is £126,000, while the average equity realised by the sale of the first home is £105,000, leaving a gap of £21,000.
Mortgage director at Lloyds Bank Andy Mason said: "Parental support continues to play a vital role in helping young people to get on the property ladder.
"However, it is clear that despite improved conditions for this part of the housing market, Second Steppers will still rely on the 'Bank of Mum and Dad’, with hard-pressed parents being once again called on for financial help."
According to Council of Mortgage Lenders figures published last month, the year to April saw lending to home movers rise 28 per cent year-on-year, compared with eight per cent for first-time buyers.
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