A new report by Lloyds Bank has revealed the cost of moving up the property ladder, for some, is just over £20,000.
The research pertains to a group of home movers called 'second steppers' - those wishing to sell their very first purchase to trade up to a bigger property. How is it possible to buy a bigger home for just £20,000? It's mainly to do with the equity that second steppers have amassed in their properties.
The Lloyds report focuses on average prices that reflect the UK as a whole, using the premise that a typical second stepper bought their first ever property in 2012, when the average price of a first-time home was £140,004.
Based on the latest house price figures - which puts the average UK first-time buyer property at £205,723 - a sale at this price would provide second steppers with average equity of £105,068. When mortgage repayments made are also taken into account, the mover would only have to borrow an additional £21,005 on their existing mortgage to buy their ideal home – typically a detached property worth in the region of £331,796.
We know London is a property micro climate of its own and figures are different in the capital. Based on data from Land Registry, first-time buyers who purchased a property in London in 2012 will have seen their property rise in value in the region of 55%, reaching an average of £522,105.
Lurot Brand - the mews specialist estate agent in Central London - found that in the Kensington & Chelsea borough, second steppers can expect to sell their home for 36% more than what they purchased it for while in Westminster, appreciation is even greater. It is possible for second steppers in this borough to sell for 50% more than the initial purchase cost.
If you'd like a current valuation of your London property or would like advice about taking the next step up the property ladder, contact Lurot Brand today.
Today’s typical second steppers bought their first property in 2012, when the average price of a first-time home was £140,004. Based on the latest house price figures, selling their home now for the average first-time buyer house price of £205,723 would provide them with an average equity of £105,068