Homeowners across the UK are concerned about the current challenges the housing market is facing, with only one in five believing there are enough affordable homes in their area, new research has found.

The findings from Lloyds Banking Group comes as house prices continue to reach record highs and as activity levels remain robust.

A study based on a sample size of 6,442 adults did suggest that more than half of young non-homeowners (57%) are feeling positive about the prospect of owning a home one day.

However, top concerns among all UK adults still included unaffordable house prices (64%), lack of social housing being built (47%), deposit requirements (44%) as well as a lack of availability of quality, affordable rental properties (39%). Other considerations that Lloyds found included supply issues such as a lack of homes being built (26%), supply disruptions (14%) and planning rules (8%).

Across the UK, both homeowners (60%) and renters (72%) agreed that house prices are the biggest issue facing the market. With the average house price now at £272,992, according to the latest Halifax House Price Index this week, Lloyds suggested the public believe issues around affordability are likely to get worse, with almost two thirds (63%) believing house prices will continue to increase over the next three years.

“House prices and transaction volumes, even among first time-buyers, have remained strong during the pandemic,” said Lloyds managing director intermediaries, Esther Dijkstra. “However, this research also shows that many people consider the continued strength of prices as the biggest factor preventing people from accessing quality and affordable homes.

“At the same time the pandemic is reshaping what we want from our homes, but large parts of the public feel that currently where and how homes are being built is not meeting the needs of local communities.

“Understanding these trends, particularly at a local level, will be vitally important in ensuring where and how we build homes keeps pace with changing needs of individuals and local communities. That’s why, as part of our commitment to help Britain recover, we are working across the industry to collectively work-out how we deliver the high-quality, sustainable and affordable homes that the country needs.”

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