Shared Ownership Helps Second Steppers Tackle £119k Property Gap
Mobility is becoming increasingly challenging for those with lifestyle requirements for a larger home, with a growing price gap making the transition from a starter home to a larger property harder than ever.
New research shows that buyers taking their second step now face an average £119,000 difference between their current home and their next purchase *(Financial Times, 2026). The average price of a zero-to-two-bedroom home stands at £226,955, while three-to-four-bedroom homes average £345,857 which is a substantial 52% increase *(Financial Times, 2026).
Why the gap for second steppers is widening
The growing price gap means buyers often need to borrow more or save for longer, while more modest price growth can restrict the equity available to support their next step. This is particularly evident in London and the Southeast.
There are several factors affecting affordability – with ongoing inflation concerns and higher mortgage rates adding further pressure. There has been a noticeable gap in equity with second steppers finding it hard to find their next home within their price range. Taking the next step on the property ladder also means the loss of first-time buyer incentives such as lower Stamp Duty costs. Those looking to downsize are also less likely to do so due to the associated costs which reduces the choice and range of homes that would suit second steppers.
How shared ownership may bridge the gap
For second steppers struggling with affordability, shared ownership offers an option which may be more accessible. Instead of purchasing 100% of a home, buy a share of a home and pay a subsidised rent to Hyde on the remaining portion. You can buy more shares at any time convenient to you through a process called staircasing and even go on to own outright.
This can make stepping up to a larger, higher‑value home more achievable by:
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- Reducing the upfront deposit needed, as it’s based only on the share purchased
- Lowering monthly mortgage repayments, helping to ease affordability pressures
- Providing access to larger homes sooner, without waiting years to save more
Hear from Sally and Dave who bought a 3 bedroom home at Spring Acres that ticked all their boxes.
Sally said: “My experience has been a very positive one, which is why we chose to buy with shared ownership again. It meant we could afford the space we were craving, in a space of our own, and somewhere we could stay long-term and grow into.”
Sally’s experience highlights the growing demand for shared ownership after buying her previous home through shared ownership too. Her apartment sold on the first day it was on the market.
She said: “The fact that it was snapped up so quickly, to a first-time buyer, shows that the demand is there and there’s a huge need for shared ownership. People want to own a home, and shared ownership is a brilliant and achievable option.”
Dean from Spring Acres is another buyer at Spring Acres who took his second step on the property ladder through shared ownership after moving from a two bedroom flat to a spacious three bedroom house.
He said: “There’s no way I would be able to afford a home like this on the open market. But shared ownership made it possible. It’s a great route to home ownership for first-time buyers and for buyers like me who are keen to take their second step up the property ladder.”
A positive knock-on effect
By helping second steppers move on, shared ownership can also free up much‑needed starter homes, improving choice for first-time buyers and supporting movement across the wider housing market.
While the gap between starter homes and the next step in the property ladder remains significant, alternative routes such as shared ownership can help buyers keep on moving.
Discover your new shared ownership home
Hyde New Homes has a range of beautiful developments to suit you that are available to buy through shared ownership.
You can find more information and resources about shared ownership here.
*UK price gap between first-time properties and bigger homes at record high Financial Times (2026)
