Home movers are having to pay almost £68,000 on average to move from a two bed flat to a three bed house outside London, a figure £4,000 more than this time last year, according to new data published by Rightmove.

The property expert revealed that the trade up gap for second-time buyers has grown to a record £67,761, and suggested the need for space has driven up prices in the three bedroom home sector.

The study, based on analysis of the average asking prices of almost three million properties, showed that the price growth of three bedroom houses has outstripped the price growth of two bedroom flats every year over the past five years.

Asking prices of two bed flats have increased by 15% over the last five years, while three bed houses have jumped by 20%, leading to the record trade up gap.

Rightmove director of property data, Tim Bannister, commented: “People who bought a smaller home five years ago and are now hoping to trade up will find it harder to afford the next rung of the ladder because of the different pace of the sectors.

“Those who really need the space and are struggling to trade up could widen their search area to find alternative places where they can get more for their money, or they may need to compromise on the type of home and opt for a terraced rather than detached.”

Rightmove’s analysis for London, which excludes prime London to remove luxury flats, showed a trade up gap of £79,112 – from an average of £486,464 for a two bed flat, to £565,576 for a three bed house.

The property expert also found that those trying to move from a three to a four bed home, potentially for extra rooms to work from home, will need to contend with an even bigger jump of £183,093 outside London – with asking prices growing by 15% over the past five years.

Bannister continued: “The cash jump is even bigger from three to four beds, likely due to four bed homes often having additional bathrooms, bigger gardens, garages or outbuildings, as well as an extra bedroom, but traditionally homeowners stay in their second home longer and so more people may have built up enough equity to make the jump to their forever home.”

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