Banks say second-steppers hit hard by recession
San Francisco, CA -- (SBWIRE) -- 01/15/2013 -- The total number of Scots moving into homes has found its way to the lowest levels in a decade, according to the Bank of Scotland.
The leading bank in the country estimated that there were 27,333 total home movers within 2012. That is a slight drop from the total of 27,5000 that was seen in 2011. The tally is also more than a third lower than the total in 2002, when over 83,000 moved.
The bank noted that its latest Home Movers Review found a small improvement in the affordability for those who are seeking homes or looking to move up on the property ladder from “second step”. The term applies to homes that are considered above first-time buyer levels, but still building-block homes.
Nitesh Patel, a housing economist at the Bank of Scotland, warned the many who were looking to move out to their first home, as they could be hindered by the “very low” levels of equity for their current properties.
The Bank of Scotland stated that they could have anywhere from £2,844 worth of equity in a home. However, the potential of second-steppers bought their initial home at the peak of the market in 2007, and thus the negative equity would result in owing more than the property was worth currently.
Mr Patel said: "Even though many of Scotland's second steppers won't have bought at the height of the market, many are still going to struggle to make that move up the housing ladder.”
"House prices have been falling or remaining flat for the past four years, and as a result many first-time owners in Scotland are still in a very low equity position."
He added that "the difficulties faced by aspiring second steppers are having a considerable knock-on impact for potential first-time buyers due to the resulting shortage of properties available on the market, with housing chains proving hard to establish."
About Removal Lists Northern Beaches
Removal Lists Northern Beaches (http://www.removalistsnorthernbeaches.net.au/) provides service information regarding quality moving and relocation services. Get a free consultation by signing up via the website and learn more about what the company has to offer.
Copyright © 2005-2013 - SBWire, The Small Business Newswire - All Rights Reserved - Important Disclaimer
Contact Us: 888-4-SBWIRE (US) - 920-321-1250 (International)