One in three wannabe home owners believe they will never be able to do so, according to new research from the Building Societies Association (BSA).

In its latest Property Tracker survey, aspiring homeowners report that they feel ‘permanently locked out’ of the market, revealing the scale of the affordability crisis and the strain it is placing on confidence, transaction volumes and the Chancellor’s tax take.

And, as first-time buyers are key drivers of the property market, their inability to get onto the housing ladder impacts all sectors, from the top to the bottom.

For too many people, the dream of owning a home has turned into a sense of defeat.”

Paul Broadhead (pictured), Head of Mortgage and Housing Policy at the BSA, says: “For too many people, the dream of owning a home has turned into a sense of defeat.

The financial barriers are well known, but policy uncertainty and the complexity of the process are now part of the problem too.”

The survey found that 58% of first-time buyers cite raising a deposit as the main obstacle, while more than half (54%) also point to the cost of monthly repayments.

A similar number (47%) say they cannot borrow enough money to make a purchase. Policy instability is also emerging as a serious concern, with 26% now considering Stamp Duty as a barrier to purchase – up sharply from just 7% three years ago.

stalling sales

With property tax reform under discussion ahead of the Autumn Budget, Broadhead warns that speculation can stall sales and damage confidence. He says: “What buyers need most is stability, not stop-start interventions that distort the market.”

BSA’s research also reveals how fragile sentiment has become. Fewer than one in five people believe now is a good time to buy, and another 44% of non-homeowners were expecting to own a home by now.