"The Government has trumpeted its commitment to supporting first-time buyers, but it seems once you’re on the housing ladder you’re basically on your own."
Sold house price data shows that the price difference between an average flat and terraced house has grown by 141% — from £20,744 to £49,916 — since 2008.
Project Etopia looked at current average prices across 100 major UK towns and cities, which revealed that the average price of a sold flat was £145,276 compared to £195,191 for a terraced house, a difference in price of 34.4%.
And if it continues to widen at its current rate, Project Etopia says within the next decade ‘second steppers’ will face a price differential between an average flat and terraced house in excess of £100,000.
However, there are still areas that offer an easier step up to the second rung of the ladder. The North West has four of the five most accessible cities for second steppers.
Manchester offers the smallest gap between rungs, with the average price difference between a flat (£164,188) and a terraced house (£171,286) less than £10,000 or 4.1%.
That compares to Luton and Hastings, both in the South East, where the average price of a terraced house is 56.8% and 54.8% higher than a flat, respectively.
Joseph Daniels, CEO of Project Etopia, commented: “There’s a potential housing crisis brewing which could damage the UK property market irreparably if it’s not addressed. The Government has trumpeted its commitment to supporting first-time buyers, but it seems once you’re on the housing ladder you’re basically on your own.
“We’re told how difficult it is to purchase your first property, but many discover once they’re on the ladder, making the next step up is more problematic.
“The lack of three and four-bed family properties coming onto the market has seen the price gap between starter homes and family houses widen over the past decade. New family homes aren’t being built fast enough to increase stock levels, leaving many ‘second steppers’ unable to upsize and forced to remain in smaller properties, living under cramped and unacceptable conditions.
“Despite the Government’s commitment to building more stock, family homes remain at a premium. An urgent solution is needed to rapidly increase the supply of homes to decongest this bottle-neck.”
