Game set and match. Young trapped in starter homes until they aren't young anymore

ruggedtoast

http://www.dailymail.co.uk/news/article-2407576/Rising-age-second-stepper-Couples-stuck-homes-hit-40.html

Families are struggling to move up the housing ladder with many trapped in the first home they bought.

Figures show that the average age of a ‘second-stepper’ has risen to 40. Five years ago, the average age at which buyers moved on to their second home was 37.

Many former first-time buyers looking to upsize because they now have children bought their flat or house before prices crashed in 2007.

As a result, they have little equity in their property – or may even have negative equity – and face difficulties getting a big enough mortgage to allow them to upsize.

Figures from Lloyds TSB show that home-mover mortgages were down by two per cent in the first half of 2013. At the same time, the number buying their first home was 19 per cent up on last year, suggesting Government schemes to get people on to the housing ladder are having some effect.


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The difference between the typical cost of a second-stepper home and the amount of equity they have has fallen in the past year, though. In June 2013 it was 4.4 times average annual earnings, down from 4.9 a year earlier.

London was the least affordable with a ratio of 5.7, with the Midlands the most affordable at 3.1.


On average, those looking to upsize have equity worth 13 per cent of the price of a typical second-step home. But in 2005, the average second-stepper was able to fund 44 per cent of their new property with equity built up in the first.

Nitesh Patel, housing economist at Lloyds TSB, said: ‘Housing affordability for the typical second-stepper has improved in the past year. Nonetheless, there are many potential second-steppers who are still in their first home, which they bought in the run-up to – and at – the peak in house prices in 2007.

So much for the chance to own a modest house in which to have a family, like the generations before. Still, as long as house prices don't go down thats what matters eh.



A couple of first time buyers in 2050 celebrate owning their first 7% share in an SO bedsit in Romford.

CLAPTON

fantastic good news

the worst and longest recession we have ever know has only increased the age that people can second step by 3 years


quite clear that once we come out of the recession the second stepping age will fall to the youngest ever.

ruggedtoast will then be reconnected with his parents and grandparents and all will live happily ever after

he will then become a forum bore about how wonderful boomers are

ruggedtoast

CLAPTON wrote: »

fantastic good news

the worst and longest recession we have ever know has only increased the age that people can second step by 3 years


quite clear that once we come out of the recession the second stepping age will fall to the youngest ever.

ruggedtoast will then be reconnected with his parents and grandparents and all will live happily ever after

he will then become a forum bore about how wonderful boomers are

Considering that the number of people who can first step is so low now, I am not sure your optimism is well grounded.

ukcarper

ruggedtoast wrote: »

http://www.dailymail.co.uk/news/article-2407576/Rising-age-second-stepper-Couples-stuck-homes-hit-40.html



So much for the chance to own a modest house in which to have a family, like the generations before. Still, as long as house prices don't go down thats what matters eh.



A couple of first time buyers in 2050 celebrate owning their first 7% share in an SO bedsit in Romford.

I though half the problem was prices had gone down reducing equity or even worse putting people into negative equity.

Rinoa

ruggedtoast wrote: »

So much for the chance to own a modest house in which to have a family, like the generations before.

My advice would be:

• Study longer
• Work harder
• Don't spend money on frivolities
• Stop whinging

Hope that helps.

michaels

How about all the houses being destroyed by fire caused by dodgy phone chargers - sure to hit supply and push prices up further

Looks like another large group who could benefit from the govt boosting equity from 5% to 25% - this could well overheat the housing market?

dryhat

Once again Max Keiser precisely articulates the problems facing young people in our broken, corrupt economy....

http://rt.com/shows/keiser-report/episode-491-max-keiser-201/

"All the increases in productivity and growth which would have accrued from a well educated population have been sold forward using futures contracts and are being used today to line speculators' pockets"

Aided and abetted, of course, by our corrupt leaders.

chewmylegoff

Good to know that 37 is young, but 40 is not. I am still in the game!

sabretoothtigger

Better then no home, moving abroad to cheaper houses is an option also ?

vivatifosi

ruggedtoast wrote: »

So much for the chance to own a modest house in which to have a family, like the generations before. Still, as long as house prices don't go down thats what matters eh.

Rugged, I know that you like to think that we boomers are the spawn of the devil, but my first home was a starter home as that was all I could afford and I lived in it for a very long time due to negative equity and DH doing his PhD.

People have two choices in life. They can either wallow in self-pity or they can get on with life. Unless people are born with a silver spoon in their mouth and have a spotless health record, nobody goes through life without some trials and tribulations. You can let life defeat you or you can make what you will of it. Quite a few people, whenever they are born, choose the latter.

Thrugelmir

Many former first-time buyers looking to upsize because they now have children

Yet their incomes haven't increased significantly. So are unable to obtain a bigger mortgage.

Perhaps they should have paid more off their (interest only) mortgages if moving was an aim.