Buyers Have Greater Expectations from Second Home

New research has shown that those buying their second property are increasingly looking for a larger home than in the past. With the rising cost of moving, including deposits, fees and costs, buyers are becoming savvier so that they can move less often. However, this is also causing a decline in the supply of starter homes as they remain in their first properties for longer.

Detached Properties More Popular

The research, carried out by Lloyds Bank, highlights that expectations of second homes have grown in the past four years. The latest figures report that 54% of buyers want a detached property, which is up from 48% in 2010. Only 51% are now considering a semi for their second property, which is down from 60%. There has also been a large rise in the number of buyers wanting to purchase a four-bedroom property the second time around. This has risen by 7% to 31%, compared with a fall of 10% for those searching for a three-bedroom home.

Another trend that was highlighted in the research is that first-time buyers are now spending longer in their initial property than they expected. On average, they stay for almost four and a half years, which is around 19 months more than they anticipated. There are two main reasons for this decision to wait longer before purchasing their second property. 37% of home owners are saving more to help finance the move, and 41% are paying more off on their mortgage in order to be able to put down a larger deposit.

Looking to the Future

When they do come to take on their second purchase, buyers are increasingly looking at setting up a long-term family base. 46% want value for money, and 38% are searching for a good neighbourhood. Home owners are realising that making a number of different moves is expensive in the long term, so they are attempting to jump further up the property ladder with their second home. This could be an opportunity to purchase a larger property or they could be looking for outstanding features such as a large garden or an iron spiral staircase.

However, with the bottom of the property ladder becoming stagnant, it is reducing opportunities for first-time buyers. There needs to be a rise in the number of new homes being built to increase the supply of affordable properties. This will enable the market to remain active and give more people the ability to buy their own home.