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Second Step on the property ladder?

Enable’s Independent Financial Advisors understand that a home to live and grow in is vital to well being.  But making that step up from a first-time buyer to a second home has risen almost threefold in the last decade. And in our experience parents like to help their children take steps forward.

A resent, Lloyds TSB report found the price difference between a typical first-time buyer flat and the semi-detached home desired by many “second steppers” has risen from £14,000 10 years ago to almost £41,000.Researchers said nearly half of first-time buyers live in flats, which average £148,502 in value. The typical price for a semi-detached house, the type of property often favoured by second steppers, stands at £189,312, meaning they face a 27% premium to trade up.Second steppers in the South East face the biggest percentage premium at 52%, equating to almost £85,000 to make the jump to their second home.

Stephen Noakes, Lloyds TSB mortgage director, said: “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.”

Enables Independent Financial Advisors can help you or your children to plan for your next big step with mortgage and savings advice.

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