Recent research from the Post Office has revealed the average age of second time home buyers has risen once again.
The recent Step-Up report, published by the Post Office, revealed the average first time buyer will now purchase their first home at the age of 28, but will have to wait another 14 years to take the next step on the property ladder.
In the late 1960’s, when records began, the average age of a second time buyer was just 28; this has now increased by a mammoth 14 years. The age gap between first time buyers and second time buyers was also at its smallest on the 60’s, with first timers buying a home at 25 and then their second home just three years later.
Tempted home buyers
House prices have been rising due to increased demand, as the Government look to pump life back into the mortgage market, which collapsed in 2007/8 as a result of the financial crisis.
Another effect of the financial crisis is the continuing lack of low or no deposit mortgages, with evidence pointing to the fact more homeowners would move if such mortgages were more widely available.
According to the most recent Halifax House Price Index, the average price of a house rose by 4.6% between April and July; bad news for would-be first and second time buyers as they struggle to pull together a large enough deposit.
The Post Office research also revealed:
- 60% of current home owners would be encouraged to move if house prices fell
- 41% of homeowners would move if mortgage rates improved
- 45% would move if they found their dream home
- A further 25% would consider a move if they got married or started a family
John Willcock, Head of Mortgages at Post Office, said: “Taking that all-important step onto the housing ladder sometimes seems like the biggest hurdle a homebuyer will face. However, we can see that it doesn’t get any easier as people try to move up the property ladder and second-time buyers can face their own set of challenges.”
He continued: “Second time buyers now expect to wait until they are in their 40s before moving on from their starter home, perhaps having to put on hold placing their roots or building a family home for years to come. At the Post Office, our products are some of the most competitive on the market and many come without arrangement fees, free standard variation and there’s no higher lending charge, which should give movers a helping hand covering costs as they climb the property ladder.” (Source: Post Office)