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

Mortgage Lenders Call for Urgent Support for First-Time Buyers

Mortgage lenders are demanding urgent action to support first-time buyers who are struggling to access the UK housing market. The call comes as the Intermediary Mortgage Lenders Association (IMLA) estimates that around 3.5 million households have been blocked from buying a property and are still waiting to do so.

The push for change is taking place ahead of a change in leadership at Number 10, with lenders urging the removal of barriers to homeownership. IMLA has welcomed a new report from Yorkshire Building Society, which calls for the Government, regulators, and the mortgage industry to work together to remove unnecessary hurdles to homeownership.

The report highlights a growing gap between the public’s aspiration to own a home and declining confidence that homeownership is achievable. According to the report, 88% of British adults say owning a home remains important, but many aspiring buyers feel locked out by affordability pressures, high deposits, and uncertainty about securing a mortgage.

Zoopla revealed in May that the number of first-time buyers has fallen by 6% this year, although first-time buyers are still “driving price growth.”

Kate Davies, Executive Director at IMLA, stated that the Yorkshire Building Society’s research reinforces the conclusion that homeownership remains important to people, despite increasing difficulty in achieving it. The research estimates that today’s younger generations could face a wealth gap of up to £1.6 million by retirement if they never get onto the housing ladder. IMLA’s own research has also shown that the long-term financial cost of remaining outside homeownership can be significant.

For letting agents and inventory clerks, these developments highlight ongoing challenges for first-time buyers and the potential impact on the rental market, as more households remain in rented accommodation due to barriers to homeownership.