Commenting on the MPC’s decision to reduce the Bank Rate by 0.25% to 4.50%, Paul Broadhead, Head of Mortgage and Housing Policy at the Building Societies Association said:  

“The BSA Property Tracker Report issued this morning shows first-time buyers are feeling more positive about the housing market and getting on the property ladder. Today’s decision by the MPC to cut the Bank Rate will therefore be very welcome news for aspiring homeowners and is likely to give a further boost to consumer confidence.  

“However, despite their optimism, we know that first-time buyers face a considerable affordability challenge. Our Report shows around two-thirds of people consider the biggest barriers to homeownership are affordability of monthly mortgage repayments and raising a deposit.    

“Bank Rate cuts alone will not ease affordability. We need a long-term housing strategy, alongside a review of mortgage regulation that considers the relative costs and benefits of stricter regulation versus the social benefits of homeownership, to support more first-time buyers into homeownership.”    

“Building societies have a proven track record of lending responsibly and supporting first-time buyers and want to do more. We are therefore very keen to work with the FCA to achieve this.“  

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