The Building Societies Association is calling on government and financial services to help build more affordable homes in the UK following a report that says home ownership levels are at a 30-year low.
The BSA says the Resolution Foundation report’s findings are the result of high housing demand, lack of local authority homes and reduced profits for private landlords.
BSA head of mortgage policy Paul Broadhead says: “The latest findings from the Resolution Foundation’s analysis of the Labour Force Survey further highlights the fragile state of housing in the UK, underpinning the need for more affordable housing.
“First-time buyers can expect to pay up to five times their annual salary for their first property, so it comes as no surprise to learn that raising a deposit continues to be the most common barrier to home ownership.
“Everyone needs a home to live in. Due to the long-term deficit in housing supply, affordability is becoming stretched whether people own their homes, privately rent, or are social housing tenants. Clearly there is a real need for a coherent housing strategy from the Government; a strategy that improves not only the number of homes, but the types of suppliers too.”
Broadhead adds: “It is time financial services as a whole, along with the Government, worked together to break down the barriers and solve this increasingly poignant problem.”