With half (50%) of British homeowners planning to move house within the next five years, and almost two-thirds (58%) setting their sights on a bigger home, they’re most certainly going to have to dig deep to fulfill their dreams.
Barclays analysis of 50,000 mortgage applications found that homeowners looking to move from a one to two bedroom property can expect to pay an average of £26,000 more. Those homeowners looking to take the next step up the property ladder however can expect to pay over double that amount, on average £61,660 for that third bedroom.
This price difference doubles again with a move from three to four bedrooms, with homeowners incurring an average price hike of £133,671 across the UK.
The new figures also lay bare how the pictures varies for homeowners across the country. While those living in the North East can expect to face an approximate £10,000 price increase to move from a one to two bed home, those in the East can expect to pay four times that amount, at £46,000. And London dwellers face a staggering average of £91,000 to move from a one bedroom to a two bedroom property.
However these price increases may come as a shock to homeowners as Barclays research reveals there are misconceptions about how much homeowners think that next step on the ladder is likely to cost, with homeowners pricing a move from a three bedroom to a four bedroom house at just under £100,000. With Barclays data showing the actual figure could be 30 per cent higher than that, homeowners are being urged to think ahead in order to be able to upsize.
Nearly half (43%) of homeowners are turning to family to help them take the next step on the property ladder. Homeowners in the West Midlands and East Anglia are the most fortunate, with 58 per cent and 52 per cent saying they have families to help with property costs respectively. However their East Midlands counterparts are more likely to have to stand on their own two feet, with only a fifth saying they can get help from their families.
The desire to help children onto the property ladder remains very strong, with more than a third of parents (38%), planning to help their children. But family support is transcending the traditional parent/child dynamic, with homeowners citing grandparents (10%) aunts and uncles (9%) and even children (6%) as potential sources of support.
In addition, the British property market is being driven by the needs of families: of the parents polled by Barclays, 77 per cent said they felt it essential that children have their own bedroom. Perhaps unsurprisingly the top priority for homeowners is to own a house in a good area, chosen by 23 per cent of people, with living in the catchment area for good schools (12%) coming second, demonstrating again the impact the needs of family life are having on the British property market.
Andy Gray, Head of Mortgages at Barclays, says:
“It is a challenging environment for British homeowners to make their way up the property ladder and family support is so important in helping them handle the sizeable price increments involved in upsizing their properties. With this in mind we launched the Family Affordability Plan earlier this year to help people move up and get on the property ladder. We want to keep listening to our customers and the wider discussions families are having about mortgages so we can support homeowners in their property plans.”
