The average price of a second stepper home less the equity in their current house stood at 4.4 times gross annual average earnings in June 2013 compared with 4.9 in June 2012.
A typical second stepper's current equity position accounts for 13% (£21,200) of the price of an average second stepper home, a rise from 1% in 2012.
Although the position has improved for those looking to put down a deposit on a new home, for some potential second home movers this may still not be sufficient to put towards a deposit when also taking the cost of moving into account.
There were around 149,000 homemover mortgages in the first half of 2013, marginally (2%) lower than a year earlier – low consumer confidence and a fragile economy impacted transactions in the early part of 2013. This is in sharp contrast to the 19% increase in first-time buyers.
The average homemover deposit in 2013 is £70,540 and the average age of a homemover is 40.
House PricesSince 2008, the average price paid by a homemover has fallen by 10% from £235,078 to £212,586 in 2013. Nationally, homemover property prices grew by 3% in the past year. (See Table 3)
Deposits and AdvancesThe average deposit put down by a homemover in 2013 was £70,540. This is just 6% higher than a decade earlier in 2003 when homemovers were typically putting down £66,812 towards their next home.
The average mortgage advance for a new homemover is £142,046; a quarter higher than a decade ago (£101,472).
Most affordable second stepper homes by region
- Yorkshire and the Humber
- North West
- East Midlands
- West Midlands
- East Anglia
- South West
- South East
- Greater London
- Northern Ireland
Nitesh Patel, housing economist at Lloyds TSB, said: "Housing affordability for the typical second stepper has improved in the past year. Nonetheless, there are many potential second steppers who are still in their first home which they bought in the run-up to, and at, the peak in house prices in 2007. Many of these homeowners may still be unable to move due to having either very low, or negative, equity in their homes.
"The lack of equity for many homeowners in their existing home largely explains why the number of homemovers in the first six months of 2013 was broadly unchanged compared with a year earlier in sharp contrast to the number of first-time buyers growing by close to 20% over the period."