High costs and a lack of properties mean millions of people either can’t get onto the housing ladder or are stuck in unsuitable housing, a survey of homeowners has discovered.
Figures published today by the HomeOwners Alliance and BLP Insurance reveal a housing ladder which is ‘broken at every step’ with first-time buyers, second steppers and downsizers alike struggling to move.
It shows that while 7.5 million aspiring homeowners cannot afford their own home, three million who already own a property and want to move cannot.
Meanwhile more than one million over 55s are stuck because they cannot find a suitable property. It is leading to fears the market has reached ‘tipping point’.
Paula Higgins, chief executive of the HomeOwners Alliance, said the figures revealed the true scale – and indeed, the breadth – of the problems facing the housing market.
She added: “Buyers and sellers at every single level are being met with problems and it’s clear that tinkering with just one area will not solve this crisis.”
First-time buyers
The poll of over 2,000 adults discovered almost three in four non-homeowners wanted to own their own home but had been prevented from doing so by high property prices, difficulty in saving for a deposit and struggles to get a new mortgage.
While aspiration to own is at its highest level in six years, around 7.5 million potential first-time buyers simply cannot achieve their dream.
Second steppers
Affordability is also the main problem for second steppers, who already own homes but want to move to a bigger or more appropriate property. Those questioned in the 18 to 54 age group who wanted to move but could not said high house prices were the main barrier.
In fact, of the 1.2 million who considered a move in the last two years but did not, 50% wanted to go to a bigger property. This, said the HomeOwners Alliance, suggested their homes may be too small for their needs.
Stamp duty was also a big challenge for second steppers, who were more concerned about the tax than any of the other groups.
Last-time buyers
One in five homeowners aged 55 or over have considered moving in the past two years but have not because of a lack of suitable housing.
Drastic action
Higgins said: “The housing market is broken at every level. A massive 75% of people want to own their own homes, yet millions face the realisation that might never happen.
“At HomeOwners Alliance we’re doing all we can to help those struggling in the market with advice, calculators and tools but there needs to be some drastic action to address this.
“The Government needs to come up with a long-term strategy. If 7.5 million people being locked out isn’t a tipping point, what is?”
Kim Vernau, chief executive of BLP insurance, said a comprehensively integrated approach was needed to cure the ills of the housing market.
She said: “Government policies such as the abolition of stamp duty for first-time buyers may have created positive headlines but it ignores the needs of large swathes of potential buyers.”
She added: “Constructing an adequate stock of purposely-built homes for last-time buyers, that meets their specific needs, has the potential to free up housing stock for first and second time buyers and inject much-needed impetus into the whole market.”
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