First time sellers are hit hardest by subdued housing market

Former first time buyers who are looking to move up the property ladder are finding it increasingly difficult to do so, research has found.

While the plight of first time buyers struggling to get on to the property ladder is often highlighted, it seems that first time sellers are finding it just as difficult to move house.

Research, carried out by Lloyds TSB, found that more than one in five first time sellers now believe it is harder to move up the property ladder than it was to get on it in the first place.

And a further 61% of ‘second steppers’ say they have been stuck on the first rung of the property ladder for more than 12 months.

The struggle faced by second steppers has been put down to a number of reasons including home affordability, the high cost of moving and a lack of buyers.

“First time sellers are now faced with some very tough challenges when trying to make their next move on the property ladder and many are finding it more difficult than getting on the ladder in the first place,” said Stephen Noakes, Mortgage Director at Lloyds TSB.

“It is vital that this group of home movers receive more support and attention as they play an intrinsic role in getting the housing market moving again.”

The research found that second sellers don’t hold out much hope for the coming year, with 34% believing it is going to be harder to sell their property this year than last.

“To achieve a sustainable housing market we need to see movement throughout the market,” added Mr Noakes.

“If second steppers get stuck on the first rung, movement at the bottom half of the ladder comes to a standstill, and this bottleneck will not only restrict the supply of starter properties but will have a knock on effect across the whole of the housing market.”

8 thoughts on “First time sellers are hit hardest by subdued housing market

  1. It is not ‘lack of first time buyers’, but the missery is all due to a great desire of 2nd steppers to make a huge profit on their first property. There is plenty of first time buyers, but they are not in position (or simply not willing) to spend huge money on overpriced properties!
    If the 2nd steppers become more reasonable and lower the prices, they will find their buyers.

    • Ridiculous comment! They need the ‘ridiculous’ price for their 1st house to pay for the ‘ridiculous’ price for their next! It’s not their fault is it – it’s the market as a whole for goodness sake.

  2. This article is part of the problem with the property bubble. No one should buy a house and expect to move in a year – then rent. That said I would prefer a simplified legal system to ease transfers.

  3. Don’t I just know it!! Just had our flat valued as was looking to make the ‘second step’. Have taken a £30k hit on £130k! Can no longer afford to move and all plans are shelved. So frustrating. Cant afford to take a personal loan to cover the negative equity AND the deposit on the next move. Should’ve rented in first place…..

    • I agree we can’t drop the price of our house as we need a hefty deposit to move up the ladder. We also probably can’t move which means first time buyers have few houses to choose from. Very stagnant market.

    • Hi Andrew Murphy. If you give me a call on 0750803 4799 I would be able to help you sell your flat even if in negative equity.

      Alexi Coban
      Property Consultant

  4. Buy to let investors are continually gazumping first time buyers on the lower priced properties. I think Stamp Duty should be introduced without a threshold for all ‘buy to let purchasers’. After all it is a business purchase they should pay tax, this may free up the lower priced properties for FTB.

  5. To j stacey i have a property portfolio and your ignorance to the tax system annoys me. I have just paid a huge tax bill i mean 1000,s not 10,000 a huge tax bill so maybe you should not voice your opinion until you homework has been done. however ftb are struggling and government proposals through banks to lend more money is not adhered to even now we as a tax payer own a good percentage of them. our government has let us down big time where has all the generated funds gone when the whole country was doing extremely well ie before 2007 ?

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