Homeownership set to become Britain’s biggest financial divide by 2050 – BSA
Its “Finance for a Fairer Future” report found the gap between those inside and outside the housing market will widen, making financial security harder to achieve for millions.
Homeownership is set to become Britain’s biggest financial divide by 2050, according to research from the Building Societies Association (BSA).
Its “Finance for a Fairer Future” report found the gap between those inside and outside the housing market will widen, making financial security harder to achieve for millions.
Parents and grandparents already believe their children will face tougher barriers to owning a home than previous generations.
The research found people will face unpredictable incomes, higher debt, smaller savings buffers and less certain retirement incomes.
An ageing population and pressure on public finances mean people will need to fund later life, care and housing costs themselves.
The report stated that homeowners will need to pay more to retrofit homes for climate change, adapt properties as they age, fund later-life care and help younger family members onto the property ladder.
Financial resilience is expected to weaken as technology changes the labour market.
It noted that artificial intelligence (AI) will change how people access financial services, but automation could leave some consumers behind.
Additionally, the research found innovation will need to continue, with products reflecting modern financial lives, including support for people with irregular incomes, better financial wellbeing guidance, later-life lending, intergenerational finance and new ways to help households build resilience before they face financial shocks.
Sarah Harrison, CEO of the BSA, said: “Homeownership 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.”
Harrison added: “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.”
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