Affordability overtakes getting a mortgage as biggest barrier to homebuying

Access to mortgage finance is improving, but affordability continues to be the biggest barrier to buying a home, new research from the Building Societies Association (BSA) shows.

Just over one in three people (37%) now see access to a mortgage as a barrier to buying a home, down from almost half (48%) two years ago.

Mortgage affordability has improved over the last two years, with fewer people citing monthly repayments as a barrier (down from 63% to 55%). Even so, affordability remains the biggest challenge, with monthly repayments and raising a deposit (56%) continuing to top the list of obstacles.

Just 16% believe now is a good time to buy, yet, people are almost three times more likely to expect house prices to rise over the next year (38%) than fall (14%), suggesting that for many, waiting doesn’t necessarily feel like the answer. 

Housing market confidence has strengthened over the last three months, with the BSA Property Tracker’s confidence index improving by 8 percentage points to -18%. While sentiment remains in negative territory, as it has for almost five years, confidence is gradually returning to the market.

Paul Broadhead, head of mortgage and housing policy at the BSA, said: "For too long, many aspiring homeowners have assumed getting a mortgage was the biggest barrier to buying a home. That's beginning to change. Lender innovation, greater flexibility around loan-to-income lending and the FCA's mortgage reforms are helping more creditworthy first-time buyers access the market.

"Affordability is now the real challenge. Tomorrow's Bank Rate decision will be closely watched, but whatever the outcome, too many people are still ruling themselves out without ever speaking to a lender or broker. Before deciding homeownership isn't for you, find out what's possible, as you may be closer than you think."