Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

BSA Calls for Modernised Legislation to Address Housing Market Challenges

The Building Societies Association (BSA) has urged the UK government to modernise legislation that it says is holding back the housing market. The BSA warned that home ownership in Britain is increasingly determined by family wealth, and that the gap between those who own property and those who do not is likely to widen in the coming decades.

According to the BSA’s long-term strategy report, strained housing affordability is part of a broader shift in household finances, including unpredictable incomes, higher debt levels, smaller savings buffers, and less certain retirement incomes. The BSA’s member chief executives have signed an open letter to Prime Minister Andy Burnham, calling for support in delivering a forward-looking housing strategy.

The letter highlights the need for action to modernise legislation and unlock the potential of the mutual sector. It also calls for better access to cost-effective capital to support more affordable and responsible lending to families, first-time buyers, and businesses.

The BSA welcomed changes to capital requirements in April, but continues to advocate for an approach that encourages greater innovation across the sector. The association’s strategy encourages building societies to innovate in housing finance, including longer intergenerational terms, improved shared ownership, greater capacity to build and develop homes, later life lending, transfers between generations, and participation in long-term rental housing.

The report notes that building societies have supported more than 360,000 first-time buyers over the past three years, with first-time buyers accounting for 39% of owner-occupied lending in the past 12 months.

These developments are relevant to UK letting agents and inventory clerks, as changes in legislation and lending practices could impact the rental market, home ownership trends, and the types of tenancies and property transactions seen in the sector.