Scottish homemovers face 'toughest market'

Man standing outside estate agent The bank said "second steppers" had been hit by falling house prices and eroding equity

Related Stories

Homeowners looking to take their second step on the property ladder are facing the toughest market conditions for more than a generation, a survey has found.

The latest Bank of Scotland Homemovers Review suggested homes were now less affordable for "second steppers" than for first-time buyers.

The average homemover deposit this year has been £46,804 - a four-fold rise from the average of £10,000 in 2002.

The bank said second steppers had been hit by eroding equity and house prices.

Their equity position now accounts for just 6% of the price of a typical second purchase, compared with 40% in 2007.

The bank said home affordability for second steppers was now similar to the 1990s, when weak house price growth through most of the decade adversely affected levels of equity.

This made it harder for the typical homebuyer to move up to the second rung of the housing ladder than it was for first-time buyers to enter the market during most of the decade.

'Serious implications'

Bank of Scotland housing economist Nitesh Patel said: "It is clearly very concerning that the challenges facing those attempting to take their second step on the housing ladder in Scotland are the toughest for more than a generation.

"This follows the significant decline in house prices over recent years and the subsequent erosion of equity among those who bought for the first time at close to the peak of the market."

She added: "The current problems facing second steppers have serious implications for the wider housing market, creating a bottleneck that significantly limits the number of homes available to first-time buyers as well as stopping many homeowners who need to move, possibly for family reasons, from doing so."

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Scotland business stories

RSS

Features

  • NS Savannah, 1962Nuclear dream

    The ship that totally failed to change the world


  • Ed Miliband takes a selfie at a Cambridge hairdressersNo more photo ops?

    Why is Ed Miliband drawing attention to his public image?


  • Espresso cup7 days quiz

    Which city serves the strongest cup of coffee?


  • Glasgow 2014 quaichs and medalsQuaich guide

    What do the Scottish gifts given to Games medallists symbolise?


  • Malaysian plane wreckage in UkraineFlight risk

    How odd is it for three planes to crash in eight days?


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.