A recent report by Lloyds TSB said almost two thirds of second steppers wanted to climb up the ladder in the past 12 months but have been unable to do so as they face an increasing number of challenges.
The latest piece of research however indicated that one of the main challenges was a shortfall or lack of a deposit with over half of all questioned agreeing that not having enough saved to cover the deposit was preventing them from taking the second step on the property ladder.
The average loan size first-time buyers received from family or friends the first time around reached almost £13,000 and many were looking for a similar amount to again to help them move up the ladder.
The additional capital needed by second steppers to trade up currently stands at an average of £41,000; a 194% increase on the £14,000 that was required 10 years ago.
Stephen Noakes, mortgage director at Lloyds TSB, said: “We already know that second steppers face a number of tough challenges and in many ways have been the hardest hit by the subdued housing market, so it is unsurprising that they are struggling to fund the gap needed to trade up to their preferred second home.
“Parents have long been helping to fund their children's first home, but many are now having to provide further support as they move up the ladder. This indicates that these customers still need attention and support.
“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.”
