The Housing Crisis is Deepening as Homeownership Remains Unaffordable

The housing crisis is deepening, as homeownership remains unaffordable for the high number of aspiring first time buyers who cannot get onto the property ladder, according to new research conducted by YouGov on behalf of the HomeOwners Alliance and BLP Insurance.

The study, now in its fourth year, polls over 2,000 UK adults on their housing concerns and the latest trends affecting homeowners and those looking to buy a home.

The survey highlights the growing appetite of first time buyers to get on the housing ladder. Around three-quarters (73%) of non-homeowners now say they would like to own their own home, compared to 69% last year, 68% in 2014 and 65% in 2013.

Although the desire to own a home is mounting, the ability for first time buyers to purchase a property and save for a deposit remain the UK’s main concerns, with 82% and 80% respectively saying that these are serious issues.

Additionally, the proportion of aspiring homeowners who say that the availability of housing is a serious problem has soared to 78%, up from 72% last year. Hopeful homeowners are also increasingly concerned about the quality of housing, with 60% naming it a serious issue.

The study also found that the housing crisis is most severe in the capital. However, the new Mayor of London, Sadiq Khan, has set ambitious aims to tackle the shortage of affordable housing.

Positively, there was a noticeable drop in concern about the rates of Stamp Duty, after the Government’s reforms were introduced almost two years ago.

However, landlords are now facing a further 3% in Stamp Duty on buy-to-let properties. Concerns have been raised that landlords may decide to leave the sector, which would cause a decline in private rental property stock; further exacerbating the affordability crisis.

The Chief Executive of the HomeOwners Alliance, Paula Higgins, comments on the results: “Despite a blizzard of Government initiatives aimed at helping homeowners, the housing crisis is deepening across the country, with ever more non-homeowners wanting their own home, and ever greater concern about the lack of housing.

“Many Government policies have boosted demand for homes, but what this survey shows is that the real problem is the desperate shortage of houses. Until the Government tackles the fundamental issue that we just don’t have enough good quality homes, the housing crisis will continue to deepen and a generation will continue to have their dreams of homeownership crushed.”

The Chief Executive of BLP Insurance, Kim Vernau, also responds: “We are now at a critical juncture for the construction industry and housing market. The Government urgently needs to speed up the delivery of new homes for aspiring first time buyers. Tenures of all types are required across the country, and affordable housing and social housing should also be a priority.”

With a high number of prospective first time buyers struggling to purchase their own homes, demand for private rental property looks set to remain strong. Therefore, good landlords that stick to the law and rent out good quality homes are crucial – make sure you check LandlordNews.co.uk regularly for landlord updates.