The BSA’s latest Property Tracker survey, conducted in October 2025, found that millions of would-be buyers feel permanently locked out of the market, underlining the growing affordability crisis and concerns over housing supply.
Affordability remains the main obstacle
Financial pressures continue to dominate the list of barriers to homeownership. Six in ten (58%) first-time buyers cited raising a deposit as their biggest challenge, while more than half (54%) pointed to the cost of monthly repayments. A further 47% said they were unable to borrow enough to buy a home, despite lenders having greater flexibility to support creditworthy borrowers.
Policy uncertainty weighs on buyer confidence
The research also suggests government policy uncertainty is adding to buyer anxiety. More than a quarter (26%) said stamp duty is now a major barrier, compared with just 7% three years ago. With potential changes to property taxes expected in the forthcoming Budget, speculation is causing some buyers and sellers to delay decisions, further dampening activity.
Frustration with the complexity of the homebuying process has also reached record levels, with 14% describing it as a major obstacle, up from 10% in July. This coincides with the government’s consultation on modernising the homebuying and selling process, aimed at improving speed and transparency.
Sentiment remains fragile
Fewer than one in five (17%) respondents said now is a good time to buy, while a third (33%) disagreed, producing a net confidence score of -16%. Although this represents a slight improvement from the summer’s -21%, overall sentiment remains subdued.
The BSA’s earlier analysis suggests that first-time buyers face the toughest market conditions in more than 70 years. Since the financial crisis, around 2.2 million prospective buyers who might reasonably have expected to own their own home have been unable to do so. Among those aged 25 to 44, the proportion who believe homeownership is completely out of reach has risen from 27% in 2020 to 33% in 2025.
Paul Broadhead, head of mortgage and housing policy at the Building Societies Association, said:
“For too many people, the dream of owning a home has turned into a sense of defeat. The financial barriers are well known, but it’s clear that policy uncertainty and the complexity of the process are now part of the problem too.
“Speculation about changes to property taxes may grab headlines, but it risks damaging confidence and creating unnecessary volatility. What buyers need most is stability, not stop-start interventions that distort the market.
“Building societies are working hard to support first-time buyers with flexible lending options and innovative mortgage offers. But lasting change requires a joined-up approach that focuses on housing supply, simplifies the buying process and creates the confidence that homeownership is achievable again.”
