"Layer onto that the enormous challenge of making the UK’s homes net zero and the challenge ahead becomes even greater."
However, for many people Covid has made the journey to home ownership much harder. Affordability remains a significant barrier for many, with 41% of renters saying getting a deposit together and meeting other upfront purchase costs make buying their own home unaffordable.
A quarter of renters said the pandemic has made it less likely they will be able to buy their own home and 68% don’t think they will ever be able to afford to buy.
63% of people now believe the UK has a housing crisis, rising to 71% of private renters.
The findings are part of research conducted by Ipsos MORI on behalf of Nationwide into attitudes regarding home and housing post-pandemic.
Research by the Organisation for Economic Cooperation and Development (OECD) shows that Britons spend the joint highest of any other nation on housing, with more than a quarter (26%) of disposable income being spent on the cost of a home on average. This rises rapidly for those in lower earning roles, including carers, labourers and couriers, where mortgage or rental payments swallow over 40% of take-home pay.
Data from Nationwide shows that currently the average first-time buyer property costs 5.6 times the average income compared to the long run average of 3.2 – a figure that hasn’t been true for around 20 years.
Overall, 57% of households are now homeowners, down from 64% in 2003.
Sara Bennison, chief product and marketing officer at Nationwide, said: “Our research and cross-industry conversations show that the pandemic has served to exacerbate long-standing issues in the housing market. Layer onto that the enormous challenge of making the UK’s homes net zero and the challenge ahead becomes even greater. The need for more homes, more affordable homes and more sustainable homes are some of the critical questions we address in the Future of Home Report which is launched on Monday.”
