Two thirds (67%) of the UK public don’t believe the housing market is currently helping people access affordable and quality homes in their area, according to Lloyds Banking Group.

The financial giant found that nearly half (48%) don’t think the new homes being built are meeting the needs of local populations.

And only one in five thinks there are enough affordable homes in their area.

The biggest concerns cited by respondents to the survey included:

• Unaffordable house prices (64%)
• Lack of social housing being built (47%)
• Challenging deposit requirements (44%)
• Lack of availability of quality, affordable rental properties (39%)
• Lack of homes being built (26%)
• Supply disruptions (14%)
• Planning rules (8%).

Biggest challenges

Both homeowners (60%) and renters (72%) agree that house prices are the biggest issue facing the market and are sceptical that the industry can adapt and deliver the affordable, quality homes the UK needs as it recovers from the pandemic.

The average house price is now at £272,992, and almost two thirds (63%) think prices will continue to increase over the next three years.

Esther Dijkstra, managing director intermediaries, at Lloyds Banking Group said: “House prices and transaction volumes, even among first time-buyers, have remained strong during the pandemic. However, this research also shows that many people consider the continued strength of prices as the biggest factor preventing people from accessing quality and affordable homes.

“At the same time the pandemic is reshaping what we want from our homes, but large parts of the public feel that currently where and how homes are being built is not meeting the needs of local communities.”

Ronan Murphy, CEO of Durkan, one of London and the South East’s leading housebuilders, added: “We recognise the challenges of meeting these housing needs. It’s not just about building at pace, but also about delivering high quality homes that create communities where people and families thrive.

“Feedback from our customers mirrors Lloyds’ research and we’re seeing that, as a result of the pandemic, people are asking for more from their homes.

“Buyers are looking for spaces where they feel comfortable both living and working. In the South East, connectivity to employment and amenities remains key, but home offices and access to green spaces have become increasingly important too.

“What’s needed now more than ever is intelligent house building.”