Lenders are demanding urgent action to help a generation of first-time buyers locked out of the housing market.

The call comes ahead of a change in leadership at Number 10, with lenders urging the removal of barriers to homeownership.

Blocked

The Intermediary Mortgage Lenders Association (IMLA) estimates around 3.5 million households have been blocked from buying a property and are still waiting to do so.

IMLA welcomes 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.

Declining confidence

The report highlights the growing gap between the public’s enduring aspiration to own a home, and declining confidence that homeownership is actually achievable.

While 88% of British adults say owning a home remains important, many aspiring buyers feel locked out by affordability pressures, high deposits and uncertainty about whether they could secure a mortgage.

The number of first-time buyers has fallen 6% this year, but they are still “driving price growth”, Zoopla revealed in May.

This report makes a compelling and evidence-based case for why homeownership still matters.”

Kate Davies, Executive Director at IMLA, says: “This report makes a compelling and evidence-based case for why homeownership still matters deeply to people, despite becoming increasingly difficult to achieve.

“At IMLA we have long argued that buying a home remains one of the most effective ways for ordinary households to build long-term financial security.”

Reinforce

She added: “Yorkshire Building Society’s research reinforces that conclusion, estimating 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.

“That chimes closely with IMLA’s own research, which has consistently shown that the long-term financial cost of remaining outside homeownership can be enormous.”

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