For many years, the dominant narrative around homeownership has been a pessimistic one. Younger people, in particular, have been told repeatedly that buying a home is no longer realistic for them, that house prices are simply too high, deposits are out of reach and mortgage lenders are unwilling to help. Over time, that message has taken root to the extent that many aspiring first-time buyers now rule themselves out before they ever explore their options.
There is no question that the last few years have been challenging. Higher interest rates, rising living costs and the end of Help to Buy all weighed heavily on confidence and activity. But those conditions also obscured a more hopeful reality. In many cases, people who assume they cannot afford to buy actually can, they simply have not taken the step of finding out.
IMLA’s report The Mortgage Affordability Paradox (2025) highlighted just how wide the gap between perception and reality has become. During long periods of historically strong affordability, particularly between 2013 and 2022, first-time buyer numbers failed to recover to anything like the levels seen in earlier decades. In fact, our analysis suggests that since the financial crisis there has been a cumulative shortfall of 3.5 million first-time buyers who would have been expected to buy, but have not done so. This was not because mortgages were unaffordable in practice, but because regulation, messaging and uncertainty discouraged many potential buyers from engaging with the market at all.
At the same time, the comparison between renting and buying has shifted in ways that are not always well understood. Nationally, the average cost of a mortgage is only marginally higher than renting, and in some parts of the country it is cheaper to buy than rent. And someone who buys rather than rents could be hundreds of thousands of pounds better off over the course of their working life, even without assuming any house price growth. Yet these facts are often drowned out by headlines that focus exclusively on house prices rather than affordability or outcomes.
As we look ahead, the mortgage market is evolving again. Interest rates have begun to settle, lender confidence is returning, and innovation is accelerating. High loan-to-value products are more widely available than many people realise. Interest-only and part-and-part mortgages are re-emerging where they are appropriate and affordable. Track-record style mortgages recognise the reality of rent payments and strong rental payment histories. Joint borrower sole proprietor mortgages are increasingly helping families support younger buyers without requiring parents to move or gift large sums outright. Alongside this, a growing number of private Help to Buy-style initiatives, builder incentives and deposit support schemes are quietly helping to bridge affordability gaps.
These product developments are being reinforced by important regulatory changes that many consumers are entirely unaware of. The Financial Conduct Authority has clarified its approach to mortgage stress rate rules, giving lenders greater certainty and flexibility in how affordability is assessed. There is already evidence that this change has allowed lenders to offer larger loans to first-time buyers and to support tens of thousands more into homeownership without weakening consumer protections. At the same time, the Prudential Regulation Authority relaxed the loan-to-income flow limit earlier this year, removing another artificial constraint that disproportionately affected first-time buyers, single purchasers and those on moderate incomes.
Crucially, these changes do not represent a return to irresponsible lending. Affordability testing remains robust, and lenders must still ensure borrowers can sustain their repayments over the long term. What has changed is the ability to lend sensibly to people whose circumstances do not fit a single narrow template. But too few consumers understand how regulation has evolved or what it now allows.
Many renters still believe that homeownership is out of reach. Some assume that without a large deposit there is no point trying. Others believe their income will never be sufficient, or that a lack of family wealth closes the door permanently. In reality, a conversation with a mortgage adviser can often dispel those assumptions very quickly. Advice is free for most consumers, and yet it is frequently only sought at the very end of the househunting journey rather than at the beginning – or before the journey even begins, when it could be most valuable.
There is also a role here for older generations. Parents with children in their twenties and thirties are often unaware of how mortgage products and regulation have changed, or how they might be able to help in ways that do not involve handing over large sums of money. Brokers are well placed to have those conversations and to explain that buying may be more achievable than families assume.
The case for a broader national effort to change the conversation is becoming increasingly compelling. Ideally, this would take the form of a government-led consumer education campaign encouraging aspiring buyers to speak to a mortgage adviser and find out how much they could borrow. The social and economic benefits of homeownership are well documented, from greater security and stability to improved long-term financial resilience and reduced pressure on the rental sector.
In the absence of such a campaign, the industry itself has an opportunity, and arguably a responsibility, to step up. Encouraging people to explore their options is not about pressuring them into buying before they are ready. It is about replacing assumption with information and pessimism with clarity.
The biggest barrier for many first-time buyers is not affordability, but belief. The belief that the answer will be no. In reality, for a significant number of people, the answer may well be yes. But they will not know that unless they ask.
If we want to rebuild confidence in homeownership, we need to start by challenging the myth that buying is impossible. In many cases, it is not. The first step is simply finding out.
