A new report from Lloyds TSB reveals that home affordability for homeowners defined as ‘Second Steppers’ has become much less favourable and declining house prices have led to equity shortfalls.

Second Steppers are homeowners looking to sell their first home and move up the housing ladder. Many who are now looking to move in today’s market would have bought close to the peak of the market and are finding it increasingly difficult to get off the ‘first rung’.

According to the report, almost two thirds have wanted to climb up the ladder in the past 12 months but have been unable to do so as they face an increasing number of challenges. More than one in five believe it is now harder to move up the ladder than get on it in the first place, with almost half (43%) also feeling it will be as equally difficult.

A lack of affordable property to buy (35% ) and a lack of offers from potential first-time buyers (32%), were cited as key barriers delaying the sale of people’s current property on top of a whole host of other challenges.

The majority (71%) of these second-time buyers are concerned about the higher levels of deposit now needed for their second property often because of a lack of equity, with 36% admitting that the lack of any deposit is the main problem they face in climbing up the ladder. The average deposit for a typical Second Stepper in 2011 was £60,670 - more than double the average deposit required back in 2001 (£24,783).

Lloyds TSB has estimated that the typical borrower in this bracket will be in a negative equity position of almost £10,000 (£9,902).

Stephen Noakes, Mortgage Director, Lloyds TSB, said: "First time sellers are now faced with some very tough challenges when trying to make their next move on the property ladder and many are finding it more difficult than getting on the ladder in the first place. It is vital that this group of home movers receive more support and attention as they play an intrinsic role in getting the housing market moving again.

“To achieve a sustainable housing market we need to see movement throughout the market. 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.”