Yorkshire Building Society has underlined its mutual commitment to making homeownership possible for ordinary people, with the launch of its thought-provoking new policy paper.
The document, titled Home Improvements – Building an Integrated Strategy for UK Housing proposes a range of holistic solutions to fixing what is wrong with the UK mortgage and housing markets, with particular focus on the plight of those looking to buy their first home.
It was launched at an event in Portcullis House, Westminster, by Susan Allen, Yorkshire Building Society CEO, and generated a lively debate around the key issues among high-profile panellists Mike Reader MP, Member of Parliament for Northampton South; Kate Faulkner OBE, Chair of the Home Buying and Selling Council, property analyst and author; Bartek Staniszewski, Senior Research Fellow at Conservative think tank Bright Blue, and Ben Cooper, Research Manager for the Fabian Society, which also helped organise the event.
The debate centred on these four policy asks for the Government, taken from the paper:
- The urgent need to provide new solutions for first-time buyers, who, according to Yorkshire Building Society’s research, are in danger of giving up on the idea of homeownership
- A call for a comprehensive strategic review of housing strategy which looks beyond new-build targets to exploit the range of possible solutions to the current shortage - including repurposing brownfield and greyfield sites and considering the evolving needs of a diverse and ageing population
- Steps to enable greater public buy-in for housing sustainability in support of the increasing environmental imperative, including promoting greater understanding of and access to viable and affordable modifications from reputable suppliers and tradespeople.
- Support for the rental sector in recognition of the vital role private landlords play in providing sufficient quality homes to cater for those who cannot, or do not wish to, buy.
These areas of focus are the result of research conducted by the Society over the past 18 months, which highlights just how tough things have become - for first-time buyers especially.
One of the starkest findings was the fact that 78% of first-time buyers believe homeownership is becoming an elite privilege. “We don’t believe homeownership should be restricted to just a select few and are pushing for change as well as playing our part by developing exciting new mortgage products to help people achieve this important life goal,” explained Yorkshire Building Society CEO Susan Allen.
“Of course, they are not the only group of borrowers who are finding it tough to secure a mortgage, due to changes in lifestyles and working patterns, and affordability challenges resulting from record-high house prices and raised interest rates.
“What we’re seeking to do in our policy paper, having listened to the issues first-time buyers and other borrowers have said they’re experiencing, is highlight the root causes, and identify the strategic changes that are needed to unlock more possibilities for consumers.
“We believe we have a responsibility to act as an industry change-maker by proposing solutions and developing our own innovative products and services to make things easier.”
In September, the Society released its latest research, suggesting that two-thirds (58%) of would-be first-time buyers aged 35 to 54 are in danger of giving up on the idea of homeownership; while 21% of 18 to 34-year-olds also feel that way. At the same time, the Society revealed that the wealth gap faced by those forced to rent for life because they cannot buy, could be as big as £2.6 million over their lifetimes.
In March, the Society launched its answer to one of the biggest barriers preventing first-time buyers from purchasing a home – raising a big enough deposit – with the creation of its first-of-its kind £5k Deposit Mortgage, which enables would-be homeowners to purchase a property worth up to £500,000 with a deposit of £5,000, which was positively received by borrowers and the industry.
Commenting on the Parliamentary launch event, Susan added: “It was great to see so many influential industry figures debating some of the key issues, and signalling their interest in ensuring positive change. Enabling homeownership for ordinary people sits at the heart of our founding purpose as a mutual building society and we hope our event and policy paper will go some way towards promoting further industry progress on these important topics.”
The event was attended by dozens of industry influencers, who included representatives from HM Treasury, trade bodies like the Building Societies Association, TheCityUK and UK Finance, and key players from the building, housing, not-for-profit and intermediary sectors.
Mike Reader MP commented: “As we have seen via the actions of the new Labour Government since the general election – including The Kings Speech – housing policy is a high priority, and it’s important that their approach to housing has a long-term focus, which will require cross-industry effort by all concerned.
“It was fantastic seeing Yorkshire Building Society helping to lead that charge with this event designed to get leading thinkers around the table to consider solutions, and I welcome further proactive steps like this in the future.”
Kate Faulkner OBE added: “The UK housing and mortgage markets have been faced with unprecedented change and disruption over the past 20 years in particular. Couple that with an evolving population with changing needs – including the post-COVID switch to hybrid working; a growing elderly population and the increase in multigenerational families resulting from that, and it’s clear radical and lasting change is needed.
“It’s widely accepted that the UK housing market has not really been given the priority and focus it deserves in recent years, and the time to change that is now, so it’s great to see Yorkshire Building Society playing its part in ensuring the key issues stay right at the top of the industry and political agenda.”
