Homebuyer confidence increases among 'second steppers'

Homebuyer confidence increases among 'second steppers' [Photo: cnythzl via iStock]

The property sales market may be buoyed by first-time homeowners hoping to take their second step on the property ladder, according to new research.

Figures from Clydesdale and Yorkshire Banks have uncovered that close to 40 per cent of first-time homeowners in the UK are aiming to sell up and purchase another property. This represents a 14 per cent increase on last year. 

Revealing homeowners' ambitions, the study revealed that close to a quarter (24 per cent) want to move in order to ascend the property ladder. A third are motivated by necessity, having outgrown their current space. 

It seems second steppers in the north of the country have more plans to move than those in the south; the figures showed that 48 per cent of first-time homeowners in the north-east and north-west aim to purchase a new property, as opposed to 29 per cent in the south-west. 

Homeowners in the London and south-east buck this trend, however, with 45 and 41 per cent of homeowners in these regions respectively planning to change abodes.

While this represents an upswing in confidence, the research also revealed that not everyone feel comfortable moving yet. Indeed, among respondents who said they were unsure about selling up and moving, 30 per cent claimed affordability was a key factor in their concern. 

Other factors giving homeowners pause for thought was their ability to find a suitable home on the market, and worries about moving on to a more substantial mortgage.

It seems like first-time buyers might be sharing the confidence of second steppers. Recent figures from the Council of Mortgage Lenders revealed that the number of first-time buyers gaining a mortgage has risen by double figures in the past year. 

Some 31,800 loans were taken out by new buyers in August this year - a 19 per cent rise compared to August 2015. Furthermore, the figures showed that first-time buyers are also spending more on new properties than in the previous period.