Joined-up approach to affordability needed to help more first-time buyers

Several high-profile property industry figures reinforced their submissions to the Housing, Communities and Local Government Committee’s housing affordability inquiry by giving in-person evidence to MPs yesterday.

Among those appearing was Timothy Douglas, head of policy and campaigns at Propertymark, who reiterated the organisation’s call for a joined-up approach to affordability – one that considers housing supply, rental market pressures, financial products, taxation and wider consumer costs together.

Douglas said affordability pressures are being driven by three interconnected factors. Deposit requirements have risen sharply in recent years, with many prospective buyers taking years to save enough—particularly renters and those without access to family support. He noted that this challenge is especially pronounced in higher-priced areas such as London and the South East.

He also highlighted the growing disconnect between house prices and earnings. While average wages have roughly doubled since the late 1990s, house prices have increased more than fourfold, meaning the typical home now costs several times the average salary. As a result, many buyers are increasingly reliant on dual incomes or are forced to abandon homeownership altogether.

Stamp duty, Douglas added, represents a further barrier to homeownership, as an upfront cost that significantly increases the overall expense of buying a property.

To address this, he recommended more frequent updates to stamp duty thresholds in line with house price growth, alongside lower or flatter rates to reduce transaction costs and improve mobility across the housing market.

Watch the evidence session here

Beth Rudolf, co-chair of the Home Buying and Selling Council, also told the committee that greater awareness of affordable housing options is needed to help more people onto the property ladder.

Meanwhile, the Chartered Institute of Legal Executives (CILEX) called for increased regulation of the estate agency sector, alongside an urgent review of agency referral fees and improvements to standards and efficiency within the conveyancing process.

 “We need to see strong regulation and education, a review of current fee structures and transparency on referral fees to ensure that consumer protection is at the heart of these [government’s proposed] reforms,” said CILEX president Sara Fowler.   

Source: Property Industry Eye