Very few people would deny that buying property was difficult and for an increasing number of people, the process is becoming extremely expensive.
Owning property was a passage in life, something that people did as they progressed into adulthood, but in recent times, this hasn’t always been the case. The cost of property has prevented many people from buying a home, but there are also so many up-front costs associated with buying property, and this has caused problems for all buyers, including second step buyers.
The bigger the deposit, the better it is for most buyers. A larger deposit can often help people obtain a mortgage in the first mortgage and a larger deposit certainly helps buyers obtain a more affordable or attractive mortgage. Other costs associated with buying a home, all of which need to be paid up-front, include stamp duty, agent fees, solicitor fees, removal costs and if you are looking to redecorate or renovate when you move in, this also costs money.
Help is on offer to first-time buyers
Help is available for first-time buyers though. There are Help To Buy schemes which assist in saving money for a deposit and in November of 2017, the Government removed stamp duty for first-time buyers purchasing property at less than £300,000. It is still expensive for people to get on to the property ladder, but help has been provided.
However, given the rising cost of house prices and deposits, many existing property owners are also struggling to raise a suitable deposit when buying their next home. A study undertaken by My Home states that 25% of second-stepper buyers require a gifted deposit to buy their next home. This is where “the bank of mum and dad” can have a role to play but not everyone has access to this style of backing. It may also be that support is available to help people buy their first home but if a property owner requires help to purchase their next home, the same sort of backing isn’t available.
The same study also suggested that 14% of first-time buyers have no intention of moving again until they retire while a third of respondents said that they would be unlikely to move unless they had to due to sizing issues.
Second step buyers won’t receive as much support in the property market
It is unlikely that there will be much backing for these second step buyers to obtain support in the manner that first-time buyers do. After all, when so many people are unable to afford their first property, there would be unrest at some people being assisted with their second property purchase. This scenario does a lot to outline the increasing challenges of the property market and of the fact that more and more people require help in finding a home.
At Williams of Petersfield, we know that every client has issues, concerns and ambitions that are unique to them. We are always happy to listen to you and provide you with the support and guidance you require, and this is available for second step buyers. To get help when making your next move, get in touch and we’ll be happy to help.