They own land! Give them money!

The Guardian outlined the problem last Sunday:

Yesterday, Lloyds TSB's third annual Second Steppers report said that 61% of those who wanted to move up the property ladder in 2012 were unable to do so, while research published tomorrow by website Rightmove, will show that 40% of people hoping to buy their second property this year are living in homes their families have outgrown.

One in 10 told Rightmove they were trying to trade up despite living in a home worth less than they paid for it. Of the 500 people interviewed by Lloyds TSB, 25% were in negative equity, while the same number reported a lack of offers on their home. Around a fifth thought it was harder to move up the housing ladder than it had been to get on it in the first place.

Oh dear, oh dear! As our Prime Minister said last week, There's no magic money tree, so how on earth are they going to fix this?

Hey presto! The Guardian explained how on Tuesday:

Ministers are planning to extend a government offer to underwrite mortgages for people struggling to buy a home from first-time buyers to so-called "second steppers", as part of a concerted plan to get the housing market moving again. The move comes amid growing evidence that a new bottleneck has emerged in the housing market with people looking to buy their second homes trapped in negative equity or struggling to raise a big enough deposit.

The Department for Communities and Local Government (DCLG) is working on a package expected to be unveiled before the budget that will offer help to second steppers by extending the NewBuy scheme, under which the government and private sector have helped underwrite mortgages principally for first-time buyers of new-build homes, to existing homeowners with limited or negative equity.

H/t Bob E by email.