The UK housing market is struggling to move forward and the reason could be buried in the group of house owners known as first time sellers.  This group is stymied by the fact that deposits have now reached a level difficult for most to attain; especially those looking to move from their current location to a new one.  This group believes government backed plans, although helpful to those needing to gain access to the first rung of the property ladder, do little to assist them in affording their second house.

The report released by Lloyds TSB indicates almost 90% are looking for more assistance from their mortgage lender.  The report also outlines how an estimated 75% are up for more assistance from the government in relation to purchasing a second house.

Deposits have now reached an unreachable level for many of those looking to move into that second house.  Almost 60,000 pounds is now required compared with slightly more than half that amount ten years prior.  Data shows this deposit level is placing an estimated 60% in a holding pattern and not enabling them to move ahead with plans to relocate.

Stephen Noakes, Lloyds TSB mortgage director, discussed the impact of first time sellers’ inability to move forward with plans to move to another house, saying: "If second steppers get stuck on the first rung, movement at the bottom half of the ladder comes to a standstill, and this bottleneck will not only restrict the supply of starter properties but will have a knock-on effect across the whole of the housing market.”

Noakes continued: "It is vital that this group of home movers receives more support and attention, as they play an intrinsic role in getting the housing market moving again."