It is not just first-time buyers who are struggling in the housing market as half of second-time buyers cannot afford to move up the property ladder either, according to new research.

Mortgage provider Abbey claims 49 per cent of homeowners hoping to trade-up find the biggest obstacle to moving to a bigger property is price, including the added extras of stamp duty and legal fees.

In 2005, the average mortgage for a first-time buyer was £90,328 and the average mortgage for people moving was £113,374 - a difference of £23,046 and a potential increase of £1352 on monthly mortgage payments.

Almost a third, 34 per cent, want to move because they do not like the area they live in and 12 per cent want to relocate to reduce their commute to work or be closer to family and friends.

"Almost half of the UK population own their home with a mortgage, and a further 23% own their home outright. If these homeowners do decide to stay put and extend this could create a bottleneck in the housing market for both new and existing property owners," said Paula Ickinger, from Abbey.

A combination of people getting on the property ladder later in life, house price inflation and wages not keeping pace with the increases have had a significant impact on the housing market, according to Abbey.