Record Gap Emerges Between First Homes and Second Stepper Properties
Former first-time buyers are confronting the most significant hurdle in at least a quarter of a century to ascend to the next level of the property ladder, according to new data from Rightmove. The property website has identified a 52% typical asking price gap between first-time buyer homes and second stepper properties, marking the largest disparity since its records commenced in 2001.
Affordability Challenges Intensify
The average price tag for a typical first-time buyer home, defined as having two bedrooms or fewer, stands at £226,955 as of March. In stark contrast, sellers of mid-market three or four-bedroom homes, commonly favoured by second steppers, are asking £345,857 on average. This translates to a cash gap of £118,902, a figure that has only been exceeded in May and June of 2025.
Colleen Babcock, Rightmove's property expert, commented on the trend, noting, "Flats, which constitute a larger portion of first-time buyer homes, especially in markets like London, have experienced slower price growth. Meanwhile, houses have surged further ahead. Concerns surrounding leaseholds and ground rents are also likely depressing flat prices."
Regional Disparities Highlighted
The challenge of trading up varies significantly across Britain. London presents the most daunting obstacle, with a 60% gap between the average price of a first home and a second home. Conversely, Yorkshire and the Humber offer the most achievable path, with a typical gap of 38%, followed by Wales at 40%.
Here is a regional breakdown of average asking prices and percentage gaps, according to Rightmove:
- East Midlands: £193,250, £281,520, 46%
- East of England: £269,079, £410,949, 53%
- London: £491,661, £788,528, 60%
- North East: £133,713, £200,787, 50%
- North West: £181,290, £274,397, 51%
- Scotland: £146,567, £230,056, 57%
- South East: £286,748, £460,781, 61%
- South West: £247,531, £378,014, 53%
- Wales: £183,640, £257,520, 40%
- West Midlands: £193,401, £290,575, 50%
- Yorkshire and the Humber: £182,029, £251,885, 38%
Expert Insights and Market Implications
Matt Smith, a mortgage expert at Rightmove, advised, "Home movers typically leverage equity built since their first purchase to fund a larger deposit, securing cheaper rates. If equity is diminished, alternatives include reducing mortgage balances through overpayments, boosting deposits via savings, considering incremental steps up the ladder, or exploring cheaper locations. Lenders have options to support higher loan-to-value moves, aided by recent regulatory changes to affordability rules."
Mary-Lou Press, president of NAEA Propertymark, emphasised the broader implications, stating, "The widening gap underscores a growing affordability crisis across the housing market. While many achieve first-time buyer status, progressing beyond that initial step is increasingly arduous, especially as house prices outpace flats. Building additional equity remains a major barrier, and there is a pressing need for more suitable homes in appropriate locations. An extra bedroom often commands a steep premium despite minimal space gains, prompting some to renovate rather than relocate, which can further constrain supply by limiting first-time buyer home availability."
This analysis highlights a critical juncture in the UK housing market, where the dream of moving up the property ladder is becoming more elusive for many households, driven by regional disparities and structural affordability issues.
