14 Skyline | Edition 8 | Winter 2025

It’ s a sad fact that around 2.2 million families and individuals who would have reasonably been expected to buy their own home since the financial crisis have not done so. Meanwhile lending in later life needs to be more flexible to support borrowers who require, and can afford, a mortgage in retirement.

Paul Broadhead

Head of Mortgages and Housing Building Societies Association

The FCA’ s mortgage rule review is timely, but not a fix all for the housing and mortgage market.

Last year, we commissioned housing expert Neal Hudson, to look at the challenges that were facing first-time homebuyers and what policy solutions could be considered to improve their chances of achieving homeownership.

The findings were published in a report – First-time buyers; age old problems, modern solutions – which highlighted that that it is the most expensive time for firsttime buyers to get on the property ladder in more than 70 years. It showed that becoming a first-time buyer was increasingly dependent on either the Bank of Mum and Dad or having two incomes above the aver- age, leaving single people, those on lower incomes, and those without family help, largely excluded.

In April 2025, we asked Neal to revisit the first-time buyer market. The second report – First-time buyers; the missing millions – found that there are 2.2 million missing first-time buyers. Around 7.2 million individuals or couples would have been expected to buy their first home since 2006, but only 5 million have achieved this.

Both reports concluded that since the financial crisis, the pendulum had swung too far towards a stricter regulatory environment rather than towards the social benefits of higher rates of homeownership. They highlighted the need for targeted innovations, new thinking and radical changes to make homes more affordable, more available, and more appropriate to the needs of those living in them.

At the other end of the market, the way people retire is changing. Rather than retirement being a one single point in time event, for many it is a phased process, often including a period of part-time working.

With no compulsory retirement age, the mortgage industry must adapt to peoples ' financial needs in later life. Particularly

With an ageing population... it is essential that our mortgage market ensures that if a borrower needs and can afford a mortgage in retirement, then the option is available to them