Average deposits for home movers have fallen significantly year-on-year, despite house price growth, the latest data from Barclays shows.
Barclays mortgage data shows that the average purchase price for home movers increased 1.0% year-on-year in June, however the average deposit value fell by 24.8%. As a result, more movers are turning to larger mortgages to bridge the gap, with the proportion borrowing at more than 75% LTV rising from 18.2% to 22.1% over the past year.
Over a third of second-steppers (34%) say they feel stuck in their current property because it is too expensive to move. Many recent first-time buyers are already planning cautiously, with 41% saying they will try to keep their next purchase close in value to their current home to reduce upfront costs.
However, this may be easier said than done – Barclays mortgage data shows that the average house price for home movers is 59.5% higher than for first-time buyers, with the gap widening 1.2% year-on-year in June. Additional support also continues to be crucial for this segment, with a fifth of second-steppers (22%) saying they will need help from family for their next purchase.
These affordability pressures are also shaping how far people are willing, or able, to move. Londoners are most likely to say it is too expensive to move at 37%, whereas those in Wales are least likely (21%). Yet second-steppers remain reluctant to compromise on location, with two thirds (65%) saying they would not move more than 10 miles away to find a suitably priced home.
Solo buyers seek independence despite affordability challenges
At the same time, solo homeownership has become increasingly common despite ongoing affordability pressures, as buyers balance independence, financial security and long-term stability.
Just 15% of those who bought their first home before 1980 say they did so by themselves, while 83% bought with a spouse or partner. However, for purchases since 2020, this drops to 54% buying with a spouse or partner, reflecting broader cultural shifts. Barclays mortgage data also shows that over a third of completions (36.9%) were for solo buyers in June.
For many, buying alone is driven by circumstance. The most common reason cited is being single but wanting to own a home (36%), followed by valuing the independence of solo homeownership (29%) and wanting control over housing decisions (22%). The trend comes amid a broader desire for long-term stability, with more than half (55%) of UK adults saying homeownership is the greatest source of long-term financial security.
However, independence does not always mean going it alone financially. Four in 10 homeowners (39%) say they received a lump sum financial gift from parents to help buy their first home, rising to 53% for the most recent first-time buyers (2020 onwards).
Lee Chiswell, head of mortgages at Barclays, commented: “The cost of moving up the ladder is forcing many second-steppers to evaluate how far their deposit can stretch, whether they need additional support from family, and what they need from their mortgage.
“At the same time, more buyers are entering the market solo than in previous generations, showing that the desire for independence and long-term security remains strong, even in a challenging market. As housing journeys become more varied, there is no longer a ‘typical’ path onto the property ladder. It's increasingly important that buyers have the confidence and support to make decisions that work for their individual circumstances.”
Julien Lafargue, chief market strategist at Barclays Private Bank and Wealth Management, said: “Affordability has been gradually improving as pay growth outpaces house prices and rates come down from their peak, but the outlook from here is unusually uncertain. The Bank of England is holding at 3.75% with a divided committee, and the next move looks finely balanced.
“This alongside elevated policy uncertainty is forcing home buyers to proceed with caution. That said, demand that has paused is waiting rather than gone, and once the rate and policy picture clears, the market appears to have a solid base to build from.”
