HBF report reveals extent of affordability crisis
New research from the Home Builders Federation (HBF) has found that the affordability crisis means 1.5 million potential homeowners are being locked out of the housing market.
Broken Ladder: The Affordability Gap lays bare the gulf between what aspiring homeowners can afford and the actual cost of purchasing a home.
The report found that young people and first-time buyers were the worst affected, and that home ownership in England has fallen to 64.8% of households in 2024 from 71% in 2003.
Neil Jefferson, HBF’s ceo, said: “The gap between what people can afford and the cost of buying a home has become a major barrier to home ownership. For millions of younger households, saving a deposit and bridging that affordability gap is no longer realistic.
“Without government intervention, home ownership will continue to fall and become the preserve of a smaller, older and wealthier group. Help to Buy demonstrated that well-designed equity loan schemes can support buyers, boost supply and deliver strong returns for taxpayers.”
House prices jump in January
The latest house price index from Rightmove has found that house prices rose 2.8% in January – the largest increase in any month since June 2015.
Annual prices have risen by 0.5%, with the average property valued at £368,031.
The record January price increase comes as home-movers return to the market during the traditional Boxing Day bounce, combined with a recovery in market sentiment after the Budget.
Meanwhile, figures from the Office for National Statistics have revealed a 2.5% increase in house prices in the twelve months to November.
The average house price is £271,000, with improvements in the north of England helping to offset a fall in annual house prices in London.
Consultation launched on national design guidance
The government has launched a consultation on updated national design guidance aimed at improving the quality, climate resilience and liveability of new homes as part of a wider overhaul of the planning system.
The proposals promote well-connected neighbourhoods with calmer streets, greener spaces and homes designed for modern living, including flexible layouts, home working and climate adaptation measures.
The consultation, which closes on March 10, will inform revisions to the NPPF and precede the introduction of model design codes later this year to provide greater clarity and reduce delays to development.
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