U.K. Second House Housing Market Less Affordable, Times Reports

Dec. 17 (Bloomberg) -- U.K. home owners seeking to buy a house for a second time are less able to do so than at any time in the past 24 years, The Times reported, citing a report from Lloyds Bank Group Plc.

The affordability ratio for second-step buyers is 5.2, up from 3.0 10 years ago, the London-based newspaper cited the Lloyds TSB Homeowners’ Review as saying. The ratio for first-time buyers is 4.1, it said.

Affordability for second-steppers is calculated by taking the average price of a semi-detached house, minus the equity in a first home as a ratio of average earnings, the newspaper said.

To contact the reporter on this story: Matthew Brown in London at mbrown42@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net