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Mortgage holders find it hard to make the next step

Date: Mon, 04 Jul 2005

First-time buyers have been warned that taking another step up the property ladder is becoming increasingly difficult.

Property portal, propertyfinder.com analysed property for sale around the UK at the end of October 2004 and found that, contrary to previous thinking, the property ladder steepens as you climb.

Each successive rung on the ladder is a much greater step than the last, forcing homebuyers to stretch themselves further and further every time they trade up, the study concluded.

On average across the UK a two-bedroom home is 1.29x the price of a one-bedroom home. A three-bedroom costs 1.72x a one-bedroom and a four-bedroom home 2.6x the price of a one-bedroom home.

Nicholas Leeming, director of the propertyfinder website, commented: "Of course, larger houses have additional reception rooms and bigger gardens, but the number of bedrooms still provides a very reliable rough guide to the UK's property ladder.

"This research shows how, far from getting easier, the climb gets tougher and the sums ever greater as you seek a larger home. A fourth bedroom costs almost as much as an entire one-bedroom home."

The study also encourages home owners to consider extending their existing home, as an alternative to looking for an entirely new property. However, if you do decide to move homes, it is worth noting that self build mortgages and other such specialty policies are available through providers such as Endsleigh Financial Services.

An additional room may cost only £15,000 to £35,000 to build, depending where you are in the country. In most cities, this is well below the cost of buying a larger home, especially when you consider the impact of stamp duty, the study states.

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Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.