People living in their first home are increasingly aiming to move into bigger four bedroom detached houses to jump rungs on the property ladder, says a new report from Lloyds Bank.
Its annual look at 'Second Steppers' shows that four years ago, three bedroom semi-detached properties were the most popular move after the first purchase. But while in 2010 almost two thirds said that they were looking to move to a semi-detached house, in 2014 detached homes top the list of preferred options with 54 per cent saying this is now their goal.
Almost a third add that they are looking for a four bedroom house, up seven per cent points since 2010.
On average, 'Second Steppers' are spending 19 months longer in their first property than they planned as they save and build up equity to move on - on average they spend four and a half years in their first home.
The report's authors also suggest that they may also be delaying having a family until they find their dream home - people moving as result of needing more room to start a family have fallen to 22 per cent, from 31 per cent two years ago.
Top of the reasons for buying a property is value for money, followed by finding a nice area in which to live.
"Second Steppers are increasingly looking to move into their long term family home for their next move, " said Andy Hulme, Mortgages Director at Lloyds Bank. "They’ve realised that they need to be savvy with their money, with more 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."
The findings show people living in their first home have to find an extra £58,400 to make up the difference between the sale price of their current property and the cost of the house they would ideally move to. This figure has gone up by £14,900 since 2013.
The average Second Stepper
* 34 years old
* Household income £58,500
* Two per cent live in a bungalow, 32 per cent live in an apartment or flat, 26 per cent in a terraced house, 28 per cent in a semi-detached house and 12 per cent in a detached house.Reuse content