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.

YBS Calls for United Action to Address Barriers to Homeownership

Yorkshire Building Society (YBS) has published research showing a growing gap between the desire to own a home and confidence in achieving it. The report, “No way home? Restoring Britain’s Housing Ladder,” highlights that while homeownership remains a key aspiration, many feel it is increasingly out of reach.

The research found that 76% of 25-34-year-olds and 59% of 35-44-year-olds aspire to buy a home, but this drops to 38% for those aged 45-54, 20% for 55-64-year-olds, and just 8% for over-65s. Among renters who still hope to buy, 31% cited insufficient savings for a deposit and another 31% said higher mortgage rates would make monthly payments unaffordable, keeping them in the rental market.

Only 11% of renters aged 20-44 are currently in a position to buy a home in England, according to the report. High living costs were the most commonly cited barrier to mortgage acceptance, mentioned by 44% of respondents. Additionally, 56% of future homeowners believe it would be difficult for them to get accepted for a mortgage.

YBS’s report suggests that clearer guidance on mortgage eligibility could help future homeowners, and that improving the availability of 5% deposit mortgages could enable 67,000 more people to join the property ladder. The report also notes that uncertainty about mortgage rates is widespread among the 20-44 age group, and that knowledge gaps and financial obstacles are significant barriers to homeownership.

For repeated renters, the report suggests that long-term renting can reflect “learned exclusion,” where liquidity pressures and historical adverse credit lead households to disengage from ownership. The report recommends improving mortgage access within responsible limits and supporting low-deposit lending to strengthen housing chains.

YBS also proposes that the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) should simplify the responsible use of existing mortgage flexibility, which could improve lender confidence to support creditworthy borrowers through judgement-led underwriting and sustainable low-deposit lending.

The research found that more than 50% of homeowners see mortgage lenders and banks as the main actors responsible for enabling movement on the housing ladder, while just over 40% of renters see it this way. Renters were more likely to attribute responsibility to the UK government.