HOMEOWNERS and growing families in Farnham face having to almost double the price of their home and mortgage just to move up the housing ladder, according to a new report by Experian.

New data has revealed the difference in the average cost of a one or two-bedroom home compared to a three to four bedroom property in Farnham is 97 per cent - far outstripping the national average of 42 per cent.

The town has the eighth highest per cent property price difference out of 275 towns across the UK, excluding central London, meaning homeowners in Farnham need to find an extra £219,866 on average to buy a bigger home.

Global information services firm Experian warns this leaves the housing market at risk of a stalemate as growing families face unaffordable hikes to their mortgage if they want to move up the ladder.

Experian’s analysis also shows that in more than half of the UK’s towns and cities the current average family income would not even be enough to secure a mortgage on a one or two bedroom property.

Using house price data sourced from property website rightmove.com, Experian found the average cost of a one to two-bedroom home in Farnham is £225,865 compared to £445,731 for a three to four-bed home.

Jonathan Westley, managing director of Experian’s consumer information services in the UK and Ireland, said: “The current housing squeeze is not only impacting on first-time buyers, but also second-time buyers; often people who have growing families and need more space.

“For families in some locations this can mean a choice between staying put or moving to another area in order to move up.

“Getting that first foot on the ladder is an important step, but moving on to a larger home can be as challenging, particularly given the shortage of housing in some areas and the increased focus on affordability in mortgage lending rules.”

However, in some parts of the country, Experian said regeneration and the building of “smart” city centre flats has created a skew in house prices, bringing the average cost of three or four bedroom homes to as little as a quarter more than a one or two bedroom property.

As such, Experian indicates proposed town centre developments in Farnham such as The Woolmead and the Brightwells scheme could help bridge the gap between starter homes and larger family homes in years to come.

Commenting on Experian’s findings, Romans estate agents’ regional sales director covering Farnham, Louis d’Espagnac, blamed the local price difference on strong demand and lack of affordable mortgages.

He said: “We’ve noticed that families in one and two-bedroom starter homes in Farnham have struggled to upsize more recently due to the Mortgage Market Review (MMR) which launched in April 2014.

“The new regulations are much stricter and some families are finding it harder to borrow the large sums of money they need when upsizing, especially if they haven’t prepared for their mortgage application properly.

“Furthermore, the larger three and four-bedroom family homes are hugely in demand and there just isn’t enough properties on the market to satisfy the demand.

“This is a problem spanning throughout much of the South East, not just in Farnham, yet this beautiful market town has a certain attraction which continues to push prices higher and higher.

“One of the largest pulls for families is the fantastic local schooling in Farnham, and finding a family home in the right catchment area can be a real struggle.”

Experian found the property gap at its widest in Scotland’s central belt, particularly around Glasgow where the cost of a larger property is at least double that of a one or two-bedroom home in five locations, topped by East Kilbride at 123 per cent.

South east England wasn’t far behind however, and particularly London commuter towns dominated by affluent professional families such as Farnham, High Wycombe, Tunbridge Wells, Horsham and Bishops Stortford.

Applying its analysis to postal districts, Experian also found the rural GU3 post code area between Aldershot and Guildford has the second largest percentage difference between a smaller home and a family home at 223 per cent - behind the YO26 area west of York at 256 per cent.