Commenting on the MPC’s decision to reduce the Bank Rate by 0.25% to 4.25%, Paul Broadhead, Head of Mortgage and Housing Policy at the Building Societies Association said:   
 
“Even though rates are slowly reducing, many first-time buyers will still struggle to achieve homeownership due to the double affordability challenge of the high cost of buying and the high cost of owning a home.  
 
“Our recent report – The Missing Millions – looks at the challenges facing first time buyers. It highlights that mortgage repayments as a proportion of income for new first-time buyers has increased by around 30% (22% of income) since its low in 2020 (18% of income).  
 
“So, whilst today’s announcement is welcome news, more needs to be done. Further cuts to the Bank Rate are anticipated this year, but we also need changes to mortgage regulations to provide lenders with more flexibility to provide real support for today’s first-time buyers.”  

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Contact: pressoffice@bsa.org.uk

About the BSA

The Building Societies Association (BSA) represents all 42 UK building societies, including both mutual-owned banks, as well as 7 of the largest credit unions. Building societies have total assets of almost £525 billion and together with their subsidiaries, hold residential mortgages of over £395 billion, 24% of the total outstanding in the UK. They also hold £399 billion of retail deposits, accounting for 19% of all such deposits in the UK. Building societies account for 40% of all cash ISA balances. 

With all of their headquarters outside London, building societies employ around 52,300 full and part-time staff.  In addition to digital services, they operate through approximately 1,300 branches, holding a 30% share of branches across the UK.