It is not only first-time buyers, even second steppers in the UK are increasingly depending on their parents, relatives and friends to move up the property ladder.
A latest report from Lloyds Bank revealed that a third of Second Steppers (families, who already own a home, but intending to move into a bigger house) needed an average of £25,450 support from family and friends to help take the next step. “Bank of Mum and Dad makes significant sacrifices to help, with almost half planning to downsize in order to help plug the gap,” the report said.
The Second Steppers are coming up with innovative ideas to move up the property ladder. Apart from using equity of their current property (62 per cent) and personal savings (39 per cent), over one in five (22 per cent) Second Steppers will mainly look to borrow from the ‘Bank of Mum and Dad’ to raise the deposit required to fund their next move. Grandparents will also be asked to support (13 per cent) and even friends (6 per cent) extend help.
The average amount that Second Steppers expect to borrow has increased by more than £4,000 (£4,219) compared to last year to £25,450, despite 57 per of them having already received financial support for their first property worth an average of £19,824.
Andrew Mason, mortgage products director at Lloyds Bank, said: “Support from generous family and friends remains vital in helping Second Steppers in taking the next step on the property ladder, despite more Second Steppers now feeling optimistic about the housing market."