Home Ownership: A Distant Dream for Many?

The dream of owning a home is an aspiration shared by many, but the reality is that it has become increasingly difficult to achieve in recent years. According to Prime Minister Rishi Sunak, homeownership has become more challenging under the Conservative government. In an interview with BBC Panorama, Sunak acknowledged that saving for a deposit is the biggest hurdle for young people who want to buy their own homes.

The Conservative Party, which has been in power for 14 years, is expected to pledge to keep the stamp duty threshold for first-time buyers at £425,000 in its manifesto. However, this may not be enough to address the underlying issues that have led to a decline in homeownership rates.

House prices continue to struggle

In fact, the latest house price index from e.surv reveals that prices are still 3.3% lower than a year ago. The average house price in England and Wales now stands at £356,014, down 0.2% on April, and down 3.3% annually. While prices are starting to stabilize, they are still a far cry from the peak reached in October 2022.

The root cause of the problem lies in the lack of affordable housing. The UK is still struggling to build enough homes to meet demand, with the latest figures showing that only 234,400 dwellings were added in the last 12 months. This is below the 2019 Conservative manifesto target of adding 300,000 homes a year by the mid-2020s.

New housing developments are scarce

Labour, on the other hand, has promised to build 1.5 million homes over five years if the party is returned to government. This ambitious target is welcome news for those struggling to get on the housing ladder.

In addition to the lack of affordable housing, high mortgage rates are also making it difficult for people to buy their own homes. The pushing back of previously expected interest rate cuts by the Bank of England has meant that any anticipated help for borrowers has been short-lived.

Mortgage rates remain high

However, there is still hope on the horizon. As the election approaches, political parties are promising action to support the first-time buyer market. YBS Commercial, for example, has hired Angela Norman as head of lending, and she is committed to bringing teams together to create a high-performing culture that focuses on providing exceptional customer experiences.

Angela Norman, head of lending at YBS Commercial

In conclusion, homeownership is indeed a distant dream for many, but it is not impossible. With the right policies and support, it is possible to make homeownership a reality for more people. As the election approaches, it is crucial that we hold our politicians accountable for their promises and ensure that they deliver on their commitments to support the first-time buyer market.

What do you think? Should homeownership be a priority for the next government? Share your thoughts in the comments below.