Second-time home buyers are still depending on parents for cash to advance the property ladder
- One in six homeowners are turning to friends/family to purchase their next property
- Those eager to buy a detached house generally need an extra £125,000
It was known that first-time buyers would be the ones relying on their parents to help them get on to the property ladder. But now 'second-time’ purchasers who are considering a move to a larger property are also leaning on the bank of mum and dad for finance.
More than one in six homeowners will need some help from family or friends to purchase their next property, research by Lloyds Bank has found.
Although the rise in property prices has helped the value of first-time homes, those wanting to move to a detached house need to find an extra £125,000, while those seeking a semi-detached home need around £17,000.
One of the biggest hurdles to moving from a first time home is the size of the deposit required, according to the bank's Second Steppers report.
Three out of four intend to increase their deposit by using equity from their current home and more than half planned to use their savings.
Nearly half of the homeowners that were surveyed has required help to buy their first home, having a loan from parents or grandparents of an average £24,000.
Statistics show that four in ten said their parents had made sacrifices to help them get onto the property ladder, this was a fall from seven in ten in 2013. One in five said they will now start a family later in life due to the demands of trying to move up the housing ladder into a family home.