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

Mortgage Industry Urges Policy Reform as 3.5 Million Households Locked Out

The mortgage lending industry is calling for policy intervention to address barriers preventing an estimated 3.5 million UK households from accessing homeownership. The Intermediary Mortgage Lenders Association (IMLA) has endorsed a report from Yorkshire Building Society recommending collaboration between government, regulators, and the mortgage sector to reduce obstacles to homeownership.

The call for reform comes as political leadership changes at Number 10, with lenders pressing for regulatory changes to improve access to the property market for aspiring buyers. The Yorkshire Building Society report highlights a widening gap between the public's aspiration for property ownership and their confidence in achieving it.

According to the research, 88% of British adults consider homeownership important, but many face barriers such as affordability constraints, high deposit requirements, and uncertainty about mortgage eligibility. The report also notes that first-time buyer numbers have declined by 6% this year, although this group continues to drive price growth in certain markets, based on data from Zoopla published in May.

The research estimates that younger generations could face a wealth gap of up to £1.6 million by retirement if they are excluded from homeownership. The report also identifies stamp duty costs and transaction taxes as ongoing barriers to market entry and mobility.

The Yorkshire Building Society report calls for coordinated action across government departments, financial regulators, and lending institutions to address structural barriers in the housing market. However, specific policy recommendations were not detailed in the announcement.

For UK letting agents and inventory clerks, these findings highlight ongoing challenges in the property market, particularly for first-time buyers and younger renters who may remain in the private rented sector for longer due to affordability issues and market barriers.