Second steppers: The average cost of stepping onto next rung of property ladder doubles in 10 years

Second Steppers need to find an additional £75,388, on average, to climb onto the next rung of the property ladder, from a flat to a house*, according to our Land Registry data research.

 We investigated the challenges faced by first-time homeowners looking to upsize, by analysing the average price of a flat and house (only terraced and semi-detached houses considered), today compared to a decade ago, in 100 major UK towns and cities, to see how the price differential has changed.

 In 2008, the step-up in price from a flat to a terraced or semi-detached house was, on average, £37,225. Today, the price differential between the first and second rungs has more than doubled (102.5%), increasing by £38,000, in 10 years.

 When detached properties were also included in the average price of a house, Second Steppers would be looking at an average cost of £133,122, to climb onto the next rung of the ladder.

If the gap between the first and second rungs of the property ladder continues to widen at its current rate, by 2028, Second Steppers could be looking at an average £150,000 to jump up to the next rung.

Best and Worst

Durham is the best area of the country for Second Steppers, with the difference between the first and second rungs of the property ladder an affordable £23,318. While, three locations in Yorkshire - Doncaster, Bradford and Hull - feature in the Top 10 list of most affordable towns for Second Steppers, as do three in the North West; Blackburn, Oldham and Liverpool.

Not surprisingly, London is the worst city for Second Steppers, with the average price differential between the first and second rungs of the property ladder, an eye-watering £343,134. The university cities of Oxford and Cambridge also feature in the Top 5 worst areas.

Sam Mitchell, CEO of Housesimple, comments: “While we’re seeing a positive trend with more first-time buyers getting onto the property ladder, Second Steppers - primarily those upsizing from a flat to a terraced or semi-detached house - still face a major jump to transition from a starter home to their family home. Despite Government commitments to building more stock, family homes remain at a premium. The problem is particularly acute in London and the south of England, where the gap for Second Steppers can feel more like a chasm. As a result, Second Steppers migration from London has always been a major driver of house price inflation in commuter towns in the home counties and increasingly as far afield as areas of the south-west.

“Things look brighter for those living or heading north, where house prices, although on the up, are still in affordable territory. And with healthy local economies in northern cities like Leeds, Sheffield, Liverpool and Manchester, the wealth of job opportunities are attracting homeowners who are looking for a fresh start, a better quality of life, and buying a family home is not just a pipe dream.”

The following table shows the average prices of a flat, terraced and semi-detached house, and the price differential between a flat and a terraced/semi-detached house, comparing 2008 and 2018:

2008	2018
Average price - flat	£111,662	£147,149
Average price - terraced house	£133,881	£197,363
Average price - semi-detached house	£163,892	£247,710
Average price - house*	£148,886	£222,537
Price difference between flat and house	£37,225	£75,388

The following table shows the best towns and cities for Second Steppers, based on the smallest average price differential between a flat and house:

Town/City	Region	(A) Avg price - flat (£)	(B) Avg. price - house* (£)	Price difference between (A) and (B)(£)
Durham	North East	69,288	92,606	23,318
Nottingham	East Midlands	115,112	141,673	26,561
Stoke-on-Trent	West Midlands	76,678	103,705	27,027
Blackburn	North West	74,285	102,492	28,207
Middlesbrough	North East	68,898	98,070	29,172
Doncaster	South Yorkshire	79,870	109,167	29,297
Bradford	West Yorkshire	101,340	130,758	29,418
Oldham	North West	98,496	128,393	29,897
Hull	East Yorkshire	82,220	112,600	30,380
Liverpool	North West	110,542	141,553	31,011
Manchester	North West	161,253	192,979	31,726
Barnsley	South Yorkshire	77,605	109,881	32,276
Chesterfield	East Midlands	101,160	133,682	32,522
Salford	North West	131,337	164,910	33,573
Mansfield	East Midlands	77,640	111,298	33,658

The following table shows the worst towns and cities for Second Steppers, based on the largest average price differential between a flat and house:

Town/City	Region	(A) Avg price - flat (£)	(B) Avg. price - house* (£)	Price difference between (A) and (B)(£)
London	London	427,197	770,331	343,134
St Alban’s	East	294,852	513,390	218,538
Cambridge	East	294,991	476,955	181,964
Oxford	South East	280,208	455,866	175,659
Guildford	South East	261,900	407,281	145,381