Prices paid by second home-movers have fallen by 10% to an average of £212,586 since 2008 but have grown 3% in the past year to increase the squeeze on growing families looking for more space, new figures show.
According to the figures from Lloyds TSB:
- In June 2013 the difference between "equity position" and "second stepper" home was 4.4 times the level of average annual earnings - an improvement on 4.9 a year earlier
- London was the least affordable with a ratio of 5.7 with the East Midlands and West Midlands, both at 3.1, on the opposite end of the scale
- On average, second steppers had equity of £21,200 or 13% the value of an average second-step home, much better than the 1% of last year
- It compares badly with 2005 when the typical second stepper was able to fund nearly half (44%) of their property with equity built up in the first
- The average equity was also far short of the average home-mover deposit of £70,540 - a figure that rose to £126,528 in London