This is according to research from Lloyds TSB which also shows that one in five now believe it is harder to move up the ladder than get on it in the first place.
Home affordability, negative equity, higher deposits, lack of buyers and cost of moving are just some of the challenges this group of home movers face
Lloyds TSB’s annual ‘Second Stepper' report, which tracks the ongoing plight of first time sellers, reveals that home affordability has become much less favourable and declining house prices have led to equity shortfalls for many.
The report also revealed general pessimism about the future of the housing market; a third (34%) believe it is going to be harder to sell their property this year than last, with over half (53%) predicting that the housing market will not improve this year.
A lack of affordable property to buy (35%) and a lack of offers from potential first-time buyers (32%), were cited as key barriers delaying the sale of people's current property on top of a whole host of other challenges.
The majority (71%) of second-time buyers are concerned about the higher levels of deposit needed for their second property often because of a lack of equity, with 36% admitting that the lack of any deposit is the main problem they face in climbing up the ladder. The average deposit for a typical Second Stepper in 2011 was £60,670 more than double the average deposit required in 2001 (£24,783).
The average house price paid by a first-time buyer has reduced by £32,815 since the typical Second Stepper bought their first home, meaning almost one in five (18%) of Second Steppers do not have enough equity in their current property to move.
Lloyds TSB has estimated that the typical Second Stepper will be in a negative equity position of almost £10,000 (£9,902).
Commenting, Stephen Noakes, mortgage director, Lloyds TSB, said: "First-time sellers are now faced with some very tough challenges when trying to make their next move on the property ladder and many are finding it more difficult than getting on the ladder in the first place.
“It is vital that this group of home movers receive more support and attention as they play an intrinsic role in getting the housing market moving again.
"To achieve a sustainable housing market we need to see movement throughout the market.
“If Second Steppers get stuck on the first rung, movement at the bottom half of the ladder comes to a standstill, and this bottleneck will not only restrict the supply of starter properties but will have a knock on effect across the whole of the housing market."
