Building Society: Government Prioritise First-Time Buyers

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Yorkshire Building Society has recently put forward a set of policy recommendations to the government, emphasising the critical need to support first-time buyers and savers. The society has expressed concerns over the challenges faced by individuals entering the housing market and aims to address these issues through its proposed measures.

The call for action comes as HM Treasury has invited feedback for the upcoming Autumn Budget, which the Chancellor is expected to present on October 30. This annual budget provides an opportunity for stakeholders to influence government policy and financial planning.

In its submission, Yorkshire Building Society has specifically highlighted the importance of prioritising the housing market. The society advocates for increased efforts to build more homes, which they believe is essential for addressing the current housing shortage and improving market stability.

Additionally, the recommendations stress the need for making homes more sustainable. By focusing on sustainability, the society aims to support long-term environmental goals and enhance the quality of housing for future generations.

Yorkshire Building Society is calling for targeted support for first-time buyers. This includes measures to make homeownership more accessible and affordable for those entering the market for the first time.

The mutual highlights a critical issue, stating: “The UK housing market is failing to meet the diverse needs of today’s population. The current supply of homes available for both purchase and rent is inadequate to address these needs effectively.”

The Society’s concerns extend beyond just housing. They have also put forward recommendations aimed at improving overall financial wellbeing. These include measures to better support individuals in managing their finances and saving for the future.

Additionally, the Society is advocating for increased investment in skilled job opportunities outside London. By promoting job growth in these areas, they hope to balance economic opportunities across the country and support broader financial stability.

The Society’s recommendations include several key proposals:

– Introducing a new help-to-buy scheme: This initiative would cover all types of property, providing essential support for first-time buyers. By expanding the scope of assistance, the scheme aims to make homeownership more accessible for a broader range of people.

– Creating a new ISA for house deposits: The proposed ISA would be specifically designed to help individuals save for a house deposit. This new savings account would offer enhanced benefits to make it easier for potential homeowners to accumulate the necessary funds.

– Reviewing regulation and taxation in the private rental sector: The Society calls for a comprehensive review of the rules and taxes affecting private rentals. The goal is to address the shortage of high-quality rental properties, which is crucial for maintaining a healthy and balanced housing market.

– Developing a framework for energy-saving home improvements: The Society proposes a structured approach to simplify the process for homeowners looking to enhance their properties with energy-efficient measures. This framework would facilitate improvements that contribute to sustainability and lower energy costs.

– Increasing the Personal Savings Allowance: The recommendation includes raising the Personal Savings Allowance from £1,000 to £5,000. This increase aims to allow individuals to save more without incurring additional tax liabilities.

– Encouraging growth in the mutual sector: The Society advocates for measures that would support and expand the mutual sector, which plays a vital role in providing financial services and promoting community-focused financial solutions.

Tom Simpson, the interim chief commercial officer at Yorkshire Building Society, highlights the importance of the upcoming Budget submission. He notes, “Our submission represents a crucial opportunity to shape government policy in ways that will directly benefit our members. As a mutual organisation owned by our members, we are deeply committed to supporting their needs and assisting our customers in achieving significant life goals.”

Simpson emphasises the current challenges facing many of their members, stating, “We are determined to use our platform to advocate for our customers who are grappling with issues such as the availability and affordability of quality homes and the ongoing cost-of-living pressures. Our goal is to see substantial reform in the housing market to ensure it serves all stakeholders effectively—buyers, renters, and landlords. If the system fails to support everyone, then it is not functioning as it should.”

The submission to the Budget builds on the Society’s ongoing efforts to engage with politicians and drive meaningful change. Recently, Yorkshire Building Society shared its five key ‘Opportunities for Government’ with MPs. These recommendations include support for first-time buyers and savers, introducing financial literacy education for all primary school children in England, and encouraging the creation of more skilled job opportunities outside of London.

Many of the recommendations in the submission are grounded in the Society’s extensive research. For instance, last year’s findings revealed that many people are postponing major life events, such as marriage or starting a family, due to difficulties in accessing the housing market. This delay is often attributed to the high barriers to homeownership and rental affordability.

Moreover, recent research by the Society underscores the positive impact of saving on mental health. The data shows that individuals who regularly set aside even small amounts of money experience significant improvements in their overall wellbeing. This highlights the need for policies that support both housing and savings to enhance the quality of life for their members.