Home ownership has been part of the fabric of the British way of life for generations, with millions pursuing the maxim of “You can’t go wrong if you put your money into bricks and mortar.” Young people have scrimped and saved, gone without holidays, meals out and other small luxuries to gradually scrape together the deposit on that dream of home of their own. For many, the dream would never become reality. For others it did, with a secured mortgage bringing not just the keys to the door, but also the first tentative step onto the property ladder. Home ownership, albeit with the assistance of a hefty mortgage, has long been regarded by many as part of the rite of passage from youth to grown-up responsibility. But within the space of a few frantic days everything changed. Former Chancellor Kwasi Kwarteng’s mini budget sent shock waves through every area of the UK’s financial landscape, including the housing market, which took a massive hit. Potential first-time buyers are consequently suffering most. The plummeting value of the pound, soaring interest rates, and all-round fiscal confusion and uncertainty have seen already nervous lenders shift into panic mode, withdrawing more than a thousand previously available mortgage packages. And many of the mortgage offers still on the table have been dramatically revised, with the interest rate on some almost doubling overnight.

Despite all the political reshuffling, the outlook for first-time buyers remains grim, especially for those hoping to secure a mortgage based on a five per cent deposit, with available deals cut by more than half since the day before the mini budget. Brokers are warning that five per cent deposit mortgages will have disappeared by next year as banks and building societies shun “riskier” borrowers. The picture is slightly brighter for those seeking to remortgage their home or with larger deposits for a new property, but many previously available deals in those sectors have also been cut. Meanwhile, homeowners across the UK are seeing their mortgage costs rocket, with many monthly repayments rising by hundreds of pounds. The soaring cost of mortgages was described by Nick Robinson on BBC Radio 4’s Today programme as the “Kwarteng premium”. The Halifax, Britain’s largest lender, says the economic uncertainty caused by recent events is likely to further damage home owning affordability. According to financial information company Moneyfacts, the average mortgage rate has risen to above six per cent, meaning that households are paying the greatest portion of their income on mortgage payments since 1989. The UK inflation rate reached a 40-year high in August, and although that figure has since fallen, the cost-of-living crisis will undoubtedly continue and likely worsen through the winter. The priority for many homeowners will be to simply cling on to their home. With house prices tumbling, could this spark a shift in attitudes? Millions around the world are content to rent rather than own the property they live in. Might this be the way forward here in the UK?