According to a recent study carried out by the comparison site, approximately half of second time buyers in the UK believe they have enough equity in their current property to pay for their deposit on their next home.
With house prices increasingly significantly many British homeowners trust that the rising value of their current home will cover the cost.
Over the past decade we have seen prices for terraced, semi-detached and detached properties rise by 21% however the price of flats only rising by 15%. This disparity has the potential to leave those second time buyers looking to upsize, with a deposit deficit when they come to buy their next home. The worst affected will be first time buyers who have in the past purchased a flat as their first home due to the affordability of this property type.
‘Second steppers have been lulled into a false sense of security by rising house prices. In some parts of the country houses have far outstripped flats and so if you are looking to move up the property ladder you need to carefully plot your next steps,’ said Tashema Jackson, money expert a uSwitch.
The widest gap between flat and house price growth within Britain is Preston where the typical value of a flat has fallen by 8%, but other property types have increase in value of up to 8.5%.
It’s not all bad news for homeowners as some areas across the UK have seen flat prices grow faster than houses. Areas such as Aberdeen, Wolverhampton and Milton Keynes have seen the average price of a flat surge by up to 57% over the last decade.
By planning ahead, finding out how much you can afford and need to save for your next move will give you the best chance of climbing up the property ladder. Countrywide can offer you free expert advice and help find the right mortgage deal to suit your circumstances. Contact us today on 01908 854436 or visit our Propertywide website for more information.