Homeownership 'in crisis' for those without access to Bank of Mum and Dad, warns Leeds Building Society boss

Richard Fearon said today that owning a home risks being “the preserve of the wealthy or for those with access to the Bank of Mum and Dad”.

It comes as new research from Leeds Building Society, involving a survey of more than 4,000 people by Censuswide, revealed 81 per cent of those looking to buy within the next five years agree that the the rising cost of living, energy costs and interest rates had made it harder to save for a deposit.

Of those who have stopped or cut the amount they are saving, 37 per cent have reduced the amount they’re saving in the last two months and 70 per cent have slashed their savings by 25 per cent to 50 per cent.The research found that nationally, prospective buyers expected to need to put down an average £17,941 as a deposit but typically only had £11,071 saved.

In Yorkshire, the expected deposit was £17,170 with an average £11,148 saved towards it.

The research also revealed that would-be homebuyers expect to spend £250,613 on a property, although the average UK house price is 18 per cent higher.

This rises to £325,631 for those looking to buy in London, which is a gap of 67 per cent to the average price there.

Those in Northern Ireland expect to pay the least in the UK (£174,445), with Wales the next cheapest place to buy (£186,828).

Yorkshire’s average property price was £212,593, with first-time buyers in the region expecting to pay £199,261.

Mr Fearon said: “The cost-of-living crisis is having a huge impact on the housing market, as it hampers people’s ability to save for a deposit.

"Already, 60 per cent of those looking to buy have delayed their purchase and 49 per cent are now not sure they’ll ever be able to buy.

"With house prices and deposit requirements remaining high, it’s clear we need to be doing much more to help people on to the housing ladder.

"Homeownership should not be the preserve of the wealthy, those with access to the bank of Mum and Dad, or those waiting for an inheritance windfall.

“Homeownership is in crisis and as a country we need to resolve the supply and demand side issues – we need to build more homes; maximise the potential of existing properties; and improve the Shared Ownership and Lifetime ISA schemes to unlock alternative routes to home ownership.”

Earlier this year, Leeds Building Society published a series of policy proposals in a report called ‘Tackling the UK’s Homeownership Crisis’.

It argued that to help homeowners with the cost-of-living the UK also needs to increase the focus on sustainability to bring down bills and improve efficiency.

The report also calls on the Government to make a “stronger case” for its Shared Ownership initiative. This government scheme lowers the deposit required as users effectively buy part and rent part of their home.