With the hike in property prices this month it is no surprise that it is having a knock-on effect throughout the entire market, with many existing homeowners taking the opportunity to sell up and move up the property ladder to a bigger property.
However, it’s not as simple as it might initially seem for these ‘second steppers’. Whilst their original properties are in high demand from eager first time buyers, the rising prices are leading to a new issue – having to find the funds for a more significant deposit and stamp duty fees for the new property, which often comes with a much heftier price tag.
New research from Uswitch has revealed that 44% of would-be second-steppers have no plans to save at all for their upcoming move, instead hoping to take advantage of the rising market, and the capital that they have made from their existing property.
However, this strategy could lead to some surprises… if the buyers are planning to move from a flat to a house they may be looking at a shortfall, as house price growth has far outpaced flats in the past ten years, shooting up by 21%, whilst flats have only increased 15%.
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