Second steppers in Scotland more reliant on Bank of Mum and Dad than first-time buyers

More than two thirds of second steppers are struggling to find a suitable or affordable property

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The Independent Online

One in six second steppers in Scotland are considering asking for a loan from their parents to fill the gap between the value of their first home and the cost of their next purchase, according to the latest research from Bank of Scotland.

Around 65 per cent of Scotland's second steppers plan to use savings or equity in their current property (73 per cent) to fund the move to their second property.

But almost one in eight are also considering going back to their family to ask for financial support.

The report shows that the average loan size first-time buyers received from family or friends is £13,000. However, the amount requested by second steppers has now risen by more than £7,000 in the past year and now stands at£16,198 (up from £9,063 in 2011).

Jut over half  of all those questioned agree that not having enough money saved to cover the deposit is holding them back them from buying their second home. In total, over two thirds of second steppers are struggling to find a suitable or affordable property.

Almost half of first time buyers surveyed are currently living in flats and 56 per cent hope their next move will be to a three bedroom house. The average value of a flat currently stands at £111,496 compared with £132,700 on average for a semi-detached house.

Laurence Mann, Head of Mortgages, Bank of Scotland said: "We already know that Scotland's second steppers face a number of tough challenges, and in many ways have been the hardest hit by the subdued housing market, so it is unsurprising that they are struggling to fund the gap needed to trade up to their preferred second home.

"Parents have long been helping to fund their children's first home, but many are now having to provide further support as they move up the ladder. This indicates that these customers still need further support. To achieve a sustainable housing market we need to see movement throughout the market. If second steppers get stuck on the first rung, movement at the bottom half of the ladder comes to a standstill."