Homeowners struggling with second step up property ladder

A new report has shown little has improved for those first-time sellers looking to take the second step on the housing ladder.

The annual Second Steppers report from Bank of Scotland revealed almost two-thirds wanted to move up the ladder in 2012 but were unable to as they face an increasing number of challenges.

Additionally, almost a fifth of respondents believe it is actually harder to move up the ladder than it was to get on it in the first place, while 47% of second steppers believe it is equally difficult to move up the ladder than it was taking the first step on to it.

In 2011 second steppers expected to spend four years in their first home whereas they are now more likely to plan to stay for five and a half years. Raising a deposit remains a key barrier.

Almost half of second steppers have lost some (36%) or all (11%) of the deposit they paid on their first property, due to declining house prices since they purchased their first home.