Having a second child costs £60,000

It costs around £60,000 to house a second child in the UK, those considering the best savings rates have been informed.

Young families and couples will need to start putting extra funds away if they are to afford a second child, as research by HSBC has revealed that the cost of a third bedroom is 1.6 times the average UK income.

London was found to be the least affordable place to have a second child, with a third bedroom costing around £163,270, while the average household income for the capital was £45,864, making the cost of an extra bedroom 3.6 times income.

However, Yorkshire was the least expensive place to have baby number two, with spare bedrooms adding £31,467 to the value of a property and annual household income standing at an average of £32,500.

The study found that 60 per cent of parents have moved house as a result of having their first or second child, with 35 per cent moving from a two bed to a three bedroom property, 11 per cent went from one to two bedrooms and 13 per cent needed the extra space and opting for four bedrooms.

"There are certainly many considerations to take when planning for your first child; however the second child seems to be catalyst for many families moving to a larger home which is 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," said Bruno Genovese, head of savings at HSBC.

Parents having a second child also have to weigh up buying a larger car, with 51 per cent of parents getting new wheels, setting them back around £17,150.

However, new research by Churchill revealed that young people looking for the best savings rates are having to choose between getting married, having children and getting their foot on the property ladder as they cannot afford to do all three.

Moneyextra.com recommends you take independent financial advice before acting on any article

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2011-11-11 17:08:57 © Moneyextra.com