Time to step it up a notch? Moving up the property ladder
2 Oct 2018
There is plenty of advice and guidance out there for first time buyers, but what if you are ready to climb on to the second rung of the property ladder?
For generations, people have bought homes early in their careers and as time goes on, moved up the ladder into larger and more expensive homes as their needs from a home developed.
Then in 2008, things changed. Prior to the global financial crisis, there were around 1.6m home sales in the UK each year, according to the Council of Mortgage Lenders. In 2009 this figure dropped drastically to 860,000. The figure is now around 1.2m which indicates there is still a 400,000 shortfall in sales compared to nearly a decade ago.
Is the ‘ladder’ now a thing of the past?
Around 320,000 of this shortfall is due to so called “missing movers”, ie those who own a mortgaged property but are not moving, according to the CML (now UK Finance). The majority of this group are under 50 and live in Cities in homes worth less than £300,000.
There are various reasons why home owners are choosing to stay in their first homes such as the costs associated with moving and a lack of suitable properties to move to in some regions. It is important to seek advice from property experts, who can discuss your options in greater details – they may be better than you think!
First time sellers, or those who are looking to climb onto the second notch of the ladder are an often overlooked group. A 2018 Lloyds Bank report states that first-time sellers view future interest rate increases as their biggest challenge to moving up the property ladder. However, around 40% believe market conditions for second steppers have improved over the last 12 months.
So the outlook is positive?
Lloyds Bank mortgages director Andrew Mason said “Second steppers are optimistic about the market conditions, which are now better than they’ve been for over five years, and with many building up substantial equity in their homes and more first-time buyers entering the market, their next move may not be far away.
Edinburgh is on the move
According to a recent Zoopla poll, the average person in the UK moves house every 23 years! However, Midlothian is the region in the UK with the most regular movers, doing so every 15 years on average and Edinburgh is 3rd on that list with the average move every 16.6 years.
Moving up the property ladder is still an attainable aspiration as perhaps the Edinburgh and Midlothian regions show. Fully understanding your options is essential. If it’s time for a move, but you are in need of some advice, do get in touch for a free appraisal. We can determine the value of your property with no obligation to go on the market and can advise on how best to take that next step.