The mortgage lending industry has called for policy intervention to address barriers preventing an estimated 3.5 million households from accessing homeownership, according to the Intermediary Mortgage Lenders Association (IMLA).
The intervention comes as political leadership changes at Number 10, with lenders pressing for regulatory reforms to improve access to the property market for aspiring buyers.
Market exclusion estimates
IMLA has endorsed a report from Yorkshire Building Society which recommends collaboration between government, regulators and the mortgage sector to reduce obstacles to homeownership. The report indicates a widening gap between public aspiration for property ownership and confidence in achieving it.
According to the research, 88% of British adults consider homeownership important, yet many potential buyers face barriers including affordability constraints, high deposit requirements and uncertainty about mortgage eligibility.
First-time buyer numbers declined 6% this year, though this segment continues to drive price growth in certain markets, according to data from Zoopla published in May. The trend adds to broader concerns about muted housing market activity across the sector.
Long-term wealth implications
Kate Davies, Executive Director at IMLA, stated: “This report makes a compelling and evidence-based case for why homeownership still matters deeply to people, despite becoming increasingly difficult to achieve.”
The Yorkshire Building Society research estimates younger generations could face a wealth gap of up to £1.6 million by retirement if excluded from homeownership. Davies noted this aligns with IMLA’s own findings on the financial impact of remaining outside the property market.
“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,” Davies said.
The report arrives as stamp duty costs continue to affect housing market dynamics, with transaction taxes identified as a barrier to market entry and mobility.
Industry recommendations
The Yorkshire Building Society report calls for coordinated action across government departments, financial regulators and lending institutions to address structural barriers in the housing market. Specific policy recommendations were not detailed in the announcement.
The mortgage industry’s intervention reflects growing concern about generational wealth disparities linked to property ownership access, as affordability ratios remain elevated relative to historical norms.
