However, it looks as though this level of help isn’t just beneficial to first-time buyers, a recent study indicates that people buying their second home, referred to as second-steppers, need assistance too. A study undertaken by My Home suggests that a quarter of people looking to make their second move on the property ladder require a gifted deposit to make their move. The finding also suggests that 30% of these second-steppers believe that they would need to gift money to a relative or loved one to assist them move up on the property ladder.
Many people happy to stay in their second home
The study also found that 14% of second-steppers had no intention of moving to a new house again, at least until retirement age and that one third of respondents said they would only move for a bigger house. Of course, a bigger house is likely to cost a lot more money, which requires assistance and you can see why these problems start to develop.
This part of the market is one that is often overlooked, and it is also a part of the market that is not going to receive much sympathy. If you already own a home, you are less likely to receive assistance in buying your next property compared to someone who isn’t already on the property ladder. Then again, the nature of the property market has changed considerably in recent times, and it would be wrong to penalise people if it could be avoided.
How much assistance can be provided to property buyers?
This is clearly a delicate situation and apart from overhauling the market, it is unclear whether any special assistance could be offered to buyers in this situation. There would then be an argument made that people buying their third property were due as much support and assistance as people buying their second and before too long, there would be calls for the entire market to be subsidised.
That won’t happen, and you can see why the focus falls on gifted deposits. Sadly, not every family is in a position where they can support their loved ones get on or move up the property ladder, but those that can are expected to play a bigger role in helping people move forward with respect to their ideal home. This is far from ideal but unless the market changes in the future, it is likely that there will be a greater reliance on family members or loved ones for financial support.
No matter what situation you are in with respect to buying or even selling property, Taylor Robinson is here to help. Please get in touch if you would like any advice or guidance when it comes to property matters.