Age at which struggling first-time buyers can finally trade up rises to 40

 

The average age at which first-time home buyers trade up to a new property has risen to 40 – with younger owners trapped in homes they purchased before the recession of 2007.

Figures also show that the number of approved home-owner mortgages dropped by 2 per cent in the first half of this year, despite those joining the housing ladder rising by a fifth – suggesting that government initiatives such as Help to Buy have increased the number of first-time buyers but young families are still struggling to move into bigger properties.

The data follows comments from Mark Carney, the Bank of England Governor, that he could use the new powers of the Bank’s Financial Policy Committee to curb surging house prices and uncontrollable mortgage lending in an attempt to stave off a housing bubble.

Mr Carney said he witnessed the “boom-bust cycle” first-hand while living in Britain during the 1990s and was “very alert to the damage it could do”. In an interview with the Daily Mail, he said the Bank would assess “emerging vulnerabilities” and could ask lenders to restrict borrowing terms or even force banks to hold more cash on their balance sheets to dampen down an overheated market.

Meanwhile, the Nationwide Building Society said house prices have risen  3.5 per cent in 2013, and climbed 1.4 per cent in the three months to August – the fastest increase in three years.

But figures from Lloyds TSB, released today, suggest the housing bubble is forcing young families to stay in first-time homes, years after acquiring them. The lender’s Home Movers’ Review showed the average age of a mover had risen from 37 in 2002 to 40 today, with most of the increase since 2007.

It said that while affordability had improved slightly for so-called “second steppers” – those looking to trade up from their first property – many of those who bought before the market crashed were still stuck in their homes.

Nitesh Patel, a housing economist at Lloyds TSB, said: “There are many potential second-steppers still in their first home, which they bought in the run-up to, and at the peak in house prices in 2007.

“Many may still be unable to move due to having very low, or negative, equity in their homes.”

The report said that many younger families had relied on having built up equity to be able to trade up.

The greater the difference between this “equity position” and the typical cost of a second home, the more difficult it is for potential buyers to get a mortgage to cover the cost of a move.

In June 2013 this difference was 4.4 times average annual earnings. London was the least affordable with a ratio of 5.7, with the East Midlands and West Midlands, both at 3.1, on the opposite end of the scale.

Sport
Aaron Ramsey celebrates after opening the scoring in Arsenal's win over Hull `
sport
News
peopleActress speaks out against historic sexual assault claims, saying things have 'gone quite far now'

Arts & Entertainment
A stranger calls: Martin Freeman in ‘Fargo’
tvReview: New 10-part series brims with characters and stories

Life & Style
Guests enjoy food and cocktail parings by Chefs Jimmy Bannos, Jimmy Bannos Jr, Daniel Rose and Mindy Segal with mixologists Josh King and Alex Gara at Bounty & Barrel: A Jack Daniel's Single Barrel Dinner Series at Heaven on Seven on April 9, 2014 in Chicago, Illinois.
food + drinkSprinkle Palcohol 'on almost any dish' for 'an extra kick' firm says...
VIDEO
Life & Style
The writer, Gerda Saunders, with her mother, who also suffered with dementia before her death
healthGerda Saunders on the most formidable effect of her dementia
Arts & Entertainment
Last, but by no means least, is Tommy Cooper and the fez. This style of hat became a permanent trademark of his act.
comedyNot Like That, Like This centres on alleged domestic abuse
Arts & Entertainment
Oxegen in Ireland has been axed as promoters decide it is 'no longer viable'
arts + ents Promoters have axed the event as it is 'no longer viable in current form'
News
The troubled star is set to give fans the biggest insight into her life away from the headlines
people Star made the announcement during the final episode of the programme, entitled Lindsay
Life & Style
YouTube clocks up more than a billion users a month
mediaEuropean rival Dailymotion certainly thinks so
Property search
Have you tried new the Independent Digital Edition iPad app?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Geography Teacher

£130 - £140 per day: Randstad Education Ilford: Secondary Geography Teacher Lo...

Do you want to work in Education?

£55 - £70 per day: Randstad Education Cheshire: Are you a dynamic and energeti...

SEN Teaching Assistant

Negotiable: Randstad Education Group: SEN TAs, LSAs and Support Workers needed...

Private Client Senior Manager - Sheffield

£50000 - £60000 per annum: Pro-Recruitment Group: The Sheffield office of this...

Day In a Page

Rubin ‘Hurricane’ Carter: The man who could have been champion of the world - and the Bob Dylan song that immortalised him

The man who could have been champion of the world

Rubin ‘Hurricane’ Carter and the Bob Dylan song that immortalised him
Didn’t she do well?

Didn’t she do well?

Miranda Hart lined up for ‘Generation Game’ revival
The Middle East we must confront in the future will be a Mafiastan ruled by money

The Middle East we must confront in the future will be a Mafiastan ruled by money

In Iraq, mafiosi already run almost the entire oil output of the south of the country
Before they were famous

Before they were famous

Can you guess the celebrity from these British Pathe News clips?
Martin Freeman’s casting in Fargo is genius

Martin Freeman’s casting in Fargo is a stroke of genius

Series is brimming with characters and stories all its own
How I brokered a peace deal with Robert Mugabe: Roy Agyemang reveals the delicate diplomacy needed to get Zimbabwe’s President to sit down with the BBC

How I brokered a peace deal with Robert Mugabe

Roy Agyemang reveals the delicate diplomacy needed to get Zimbabwe’s President to sit down with the BBC
Video of British Muslims dancing to Pharrell Williams's hit Happy attacked as 'sinful'

British Muslims's Happy video attacked as 'sinful'

The four-minute clip by Honesty Policy has had more than 300,000 hits on YouTube
Church of England-raised Michael Williams describes the unexpected joys in learning about his family's Jewish faith

Michael Williams: Do as I do, not as I pray

Church of England-raised Williams describes the unexpected joys in learning about his family's Jewish faith
A History of the First World War in 100 moments: A visit to the Front Line by the Prime Minister's wife

A History of the First World War in 100 moments

A visit to the Front Line by the Prime Minister's wife
Comedian Jenny Collier: 'Sexism I experienced on stand-up circuit should be extinct'

Jenny Collier: 'Sexism on stand-up circuit should be extinct'

The comedian's appearance at a show on the eve of International Women's Day was cancelled because they had "too many women" on the bill
Cannes Film Festival: Ken Loach and Mike Leigh to fight it out for the Palme d'Or

Cannes Film Festival

Ken Loach and Mike Leigh to fight it out for the Palme d'Or
The concept album makes surprise top ten return with neolithic opus from Jethro Tull's Ian Anderson

The concept album makes surprise top ten return

Neolithic opus from Jethro Tull's Ian Anderson is unexpected success
Lichen is the surprise new ingredient on fine-dining menus, thanks to our love of Scandinavian and Indian cuisines

Lichen is surprise new ingredient on fine-dining menus

Emily Jupp discovers how it can give a unique, smoky flavour to our cooking
10 best baking books

10 best baking books

Planning a spot of baking this bank holiday weekend? From old favourites to new releases, here’s ten cookbooks for you
Jury still out on Manchester City boss Manuel Pellegrini

Jury still out on Pellegrini

Draw with Sunderland raises questions over Manchester City manager's ability to motivate and unify his players