Homeownership will become the "central dividing line of financial security" in Britain by 2050, with owning a home increasingly dependent on family wealth rather than hard work and saving, according to a new strategy report from the Building Societies Association (BSA).
The report warns that, unless action is taken, the gap between those inside and outside the housing market will widen significantly over the coming decades, creating a growing generational divide and making it harder for millions to build long-term financial security. The findings reflect growing concerns that many parents and grandparents already believe their children will struggle to achieve milestones that previous generations took for granted.
While housing affordability remains a pressing challenge today, the BSA argues the issue is part of a much broader shift. More people are expected to face unpredictable incomes, higher levels of debt, smaller savings buffers and less certain retirement incomes, leaving households carrying more financial risk than ever before. At the same time, an ageing population and increasing pressure on public finances mean individuals will be expected to take greater responsibility for funding later life, care and housing costs themselves.
The report also warns that even owning a home will not guarantee financial security. Homeowners are likely to face growing costs to retrofit homes for climate change, adapt properties as they age, fund later-life care and help younger family members onto the property ladder. Housing wealth will increasingly become the asset families rely on to support future generations.
Alongside the housing challenge, the report argues that Britain's financial resilience is set to weaken as technology reshapes the labour market, leaving more people with variable and unpredictable incomes. Higher levels of student debt, limited savings and the continued shift towards defined contribution pensions will place greater responsibility on individuals to manage financial risk throughout their lives. Artificial intelligence will transform the way people access financial services, but the report warns that increasing automation could leave some consumers behind.
The BSA argues that financial institutions will need to evolve beyond traditional mortgages and savings accounts, developing new ways to support people through every stage of their financial lives, from building savings and buying a first home to managing later-life finances and intergenerational wealth.
Sarah Harrison, chief executive of the Building Societies Association, commented: "Home ownership has long been one of the foundations of financial security in Britain. But unless we act now, we risk creating a society where owning a home depends less on hard work and careful saving, and more on whether your family has the wealth to help you onto the property ladder.
"At the same time, people's financial lives are becoming more complex. More variable incomes, longer lives and greater personal financial responsibility mean households will need trusted support to build resilience throughout their lives.
“Building societies are already showing that there are different ways to help people achieve home ownership, including many who might otherwise think buying is out of reach, and are helping millions build stronger savings habits. As people’s lives continue to change, we need to ensure the sector has the freedom to keep innovating, developing new products and services that reflect how people live and work today, while remaining true to our purpose of improving members’ financial wellbeing."
