For the third year in succession, a YouGov survey commissioned by the New Homes Marketing Board (NHMB) has shown that the vast majority of Britons still want to invest in homes of their own despite the nation’s economic woes.

While the shortage of mortgage funding and the loss of confidence in the housing market are still causing serious frustration – with over a third of respondents saying their chances of buying a home of their own are worse than a year ago - the public’s general belief in home-ownership is undented, with just under nine out of ten respondents (89 per cent) stating that they regard it as a sensible investment in their future.

A virtually identical YouGov survey carried out for the NHMB two years ago, in 2008 – before the worst of the banking crisis and global credit crunch - produced a figure of 90 per cent. In last year’s 2009 YouGov survey, it dropped marginally to 88 per cent, before bouncing back to 89 per cent this year  

David Pretty CBE, Chairman of the New Homes Marketing Board, said today: “Even though the economic situation has worsened dramatically since our first survey on this subject two years ago, our latest look at underlying demand for home ownership shows that it remains very strong.  Our national belief in the benefits of home-ownership seems almost unshakeable, which is quite remarkable given the current economic situation.

“However, this climate is still serving to thwart home ownership ambitions more than at any time in modern history, with 43 per cent of respondents putting their plans on hold citing difficulties in either obtaining a mortgage (26 per cent), saving for the larger deposits when their bills and daily expenses are rising (44 per cent) or lack of confidence in the market (23 per cent). Looking at the results of this latest survey, it is clear that this is causing frustration and resentment. It is particularly frustrating for those buyers who are creditworthy and have a reasonable deposit but who simply cannot get a suitable mortgage,” he said.

Underlining this message, 46 per cent of respondents planning to buy a property expected to have to delay buying homes by remaining with their parents (15 per cent) or continuing to rent their existing residence (24 per cent), and more than half (60 per cent) felt frustrated by their situation.

Some 59 per cent of those who plan to buy property say they will contemplate buying a home when the market improves. This figure is down from 64 per cent last year, as frustrations continue to take their toll. 

David Pretty said: “We said after last year’s survey that too many people were prevented from buying by the shortage of mortgages, which couldn’t even satisfy the demand that existed then, as well as by punitive rates of interest for first-timers and the need for much larger deposits. The housing market is showing signs of early improvement but the economy is still fragile and housing output has slumped to the lowest peacetime levels for 80 years. As a result, demand far outstrips supply and the backlog continues to grow.

“I have in the past warned that this could drive pent-up demand to dangerously high levels – something which is now coming true. The housing backlog across the country, which has been substantial for some years, is now approaching 1 million by the end of this year and could, on current form, be 2 million by 2020. “

He added: “Sooner or later this unsatisfied demand will be released into a market which will not be able to satisfy it. This will put strong upward pressure on house prices once again, and that certainly won’t benefit housebuyers.”

In last year’s survey, aspiring buyers re-iterated pleas for more Government help for first-time buyers, with over half of respondents supporting the introduction of a Government-backed deposit savings scheme for first-time buyers, which David Pretty has been pressing Ministers to introduce for the past three years.

Mr Pretty said the industry is urging the Government and the Council of Mortgage Lenders to do everything possible to improve liquidity and mortgage availability, adding: “I am repeating my call for the setting-up of a National Homes Deposit Savings Scheme. This will actively encourage youngsters to save for their deposit well in advance, with a 25 per cent tax free contribution from Government on top of their savings.”  

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For media enquiries contact Bob Barlow on 07860 429073 or bob.barlow@rbc-pr.com

Notes to editors:

1. All figures, unless otherwise stated, are from YouGov Plc.  Total sample size was 2090 adults. Fieldwork was undertaken between 17th – 19th February 2010.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+). The results, which include breakdowns by region and socio-economic grading, can by found by following the link below:

2. Click here to view the results produced by YouGov.

3. The New Homes Marketing Board (NHMB) was established in 1982 by the Home Builders’ Federation (HBF) to promote the need for new housing to the general public and raise awareness of the benefits of new homes. The NHMB is supported by HBF members and the majority of home builders registered with the National House Building Council, as well as material producers, suppliers, and associated industries. See www.nhmb.co.uk

4. David Pretty has for many years campaigned to highlight the plight of first-time buyers and the causes of the housing shortage. He was CEO of Barratt Developments PLC until October 2006, and was made a CBE for services to house building In the Queen's Birthday Honours List 2007.  He is a Director of the Home Builders Federation (HBF), Chairman of the New Homes Marketing Board, a trustee of The Prince’s Regeneration Trust and an appeal board member of Shelter, the homelessness charity.  He contributes regularly to trade publications and is an occasional advisor to Government and financial institutions on housing issues. Most recently he jointly headed the Killian-Pretty Review into the planning applications process, which reported at the end of 2008.