Former first-time buyers ‘face biggest gap on record to trade up to next home’

People who have bought their first home are facing the biggest step in at least a quarter of a century to climb on to the second rung of the property ladder, according to Rightmove.

The average price tag on a typical first-time buyer home with two bedrooms or fewer in March is £226,955, the website said.

But to take the second step on the property ladder, buyers across Britain face potentially paying 52% more typically – the biggest percentage gap since Rightmove’s records started in 2001.

Sellers of mid-market three or four bedroom homes, which are often favoured by second steppers, are asking £345,857 on average, the website said.

In cash terms, this is a £118,902 step up from a typical first home to a second property. This cash gap has only been bigger in May and June 2025.

In London, buyers face a 60% gap between the average price of a first home and a second home.

Trading up from a starter home is potentially most achievable in Yorkshire and the Humber, where the typical gap is 38%, Rightmove said.

Wales was found to be the second most affordable area in which to trade up, with a 40% gap.

Colleen Babcock, Rightmove’s property expert, said: “Flats, which make up a much larger share of first-time buyer homes and markets like London, have seen slower price growth, while houses have pulled further ahead.

“Concerns around leaseholds and ground rents are also likely weighing on flat prices.”

Matt Smith, a mortgage expert at Rightmove, said: “Home movers usually take advantage of having built equity since the purchase of their first home to fund a larger deposit, meaning they have access to cheaper rates.

“If equity is reduced, this means home movers are likely to need to look at alternative strategies, either through reducing their mortgage balance by overpaying, or boosting their deposit through savings.

“They can look at taking more incremental steps up the housing ladder, or scout out alternative, cheaper locations.

“If buyers are facing the prospect of moving up the ladder at higher loan-to-values, lenders do have options to support this, powered up by recent changes to affordability rules by the regulators.”

Mary-Lou Press, president of NAEA (National Association of Estate Agents) Propertymark said: “The growing gap between first-time buyer homes and second stepper properties highlights a widening affordability challenge across the housing market.

“While many first-time buyers are getting on to the ladder, progressing beyond that first step is becoming increasingly difficult, particularly as house prices continue to outpace those of flats.

“Building the additional equity required to trade up remains a major barrier for many households.

“There also needs to be a stronger focus on delivering the right homes in the right places.

“An additional bedroom can command a significant premium despite offering limited extra space, meaning some homeowners may choose to renovate rather than move.

“However, this can further restrict supply, as fewer first-time buyer homes return to the market, limiting opportunities for new entrants.”

Here are average asking prices for a typical first-time buyer home, followed by an average second stepper home, and the percentage gap, 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%