£60k price of a second child’s room

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The added cost of housing a second child in the UK is £59,500, with the average three-bedroom property costing 38 per cent more than a home with two bedrooms, says new research from HSBC.

In the East Midlands the average cost is £47,812.

The additional cost of a third bedroom represents 1.6 times annual household income in the country.

HSBC asked 1,000 parents with two or more children about changes in their lifestyles after children arrived.

Some 60 per cent of parents have moved house as a result of a first or second child: some 35 per cent moved from a two- to a three-bedroom property, 11 per cent from a one- to a two-bedroom home, and 13 per cent from a three- to a four-bedroom home.

Bruno Genovese, HSBC head of savings, says: “The second child seems to be catalyst for many families moving to a larger home, often the largest financial outlay they will ever undertake. This research highlights the importance of saving to ensure you are able to cope financially with the cost implications of having a family.”

The research found that London is the most expensive place to house a second child. The average cost of a third bedroom in the capital is £163,270 or 3.6 times gross annual household income.

This is five times the cost in Yorkshire which is the most affordable place to have a second child. The additional price of a third bedroom (£31,467) is almost equal to household income in the region (£32,500).

In terms of the percentage increase in property price, the East Midlands is the most expensive region in which to upsize: an average three-bedroom home costs 42 per cent more than a two-bedroom home.

London and other southern counties including Hertfordshire, Berkshire and Surrey are the most expensive places to house a second child with the cost of a third bedroom topping £100,000.

Scottish and Welsh counties are the most affordable places to move up a bedroom - with the cost of a third bedroom in Swansea just £8,000.

Parents with two children or more usually buy a bigger car: 51 per cent of parents do this, potentially costing an additional £17,150.

The difference in price for a new Ford Fiesta compared to the more family friendly Ford Focus is £6,000 or up to £17,150 for the larger Ford Galaxy. One in ten (ten per cent) added an extension to their home, costing an average £21,256 and six per cent tried a loft conversion, average cost £17,500.

Cost of third bedroom by region is: London £163,270, South East £75,048, East Midlands £47,812, North East £43,529, East £53,848, North West £42,643, West Midlands £46,346, Scotland £45,357, Wales £45,481, Yorkshire £31,467, Great Britain £59,480.