How do you solve a problem like affordability?

Affordability is one of the toughest issues in the mortgage and property market right now, caused by house price growth being far steeper than increases in average income. Whilst some easing of regulation may allow some borrowers (particuarly those with good incomes and high credit scores) to borrow more than the usual caps, the real solution will be the building of truly affordable homes. Schemes like joint borrower, sole proprietor, long term fixed rates and Gen H's deposit boost are merely papering over the huge affordability chasm and won't stop many borrowers from falling.

Affordability has been one of the big issues plaguing potential homeowners over the past few years. While we have started seeing forward-thinking lenders launch innovative products recently, more must be done. Bravo to lenders such as Skipton Building Society, Accord, April Mortgages and Gen H, who have excelled here. While the FCA has been careful to highlight lenders' flexibility in their affordability guidance, it seems many lenders still feel too restrained. It would be great to see historical rental payments regularly used as a guide to affordability while also carefully updating stress testing rules that still see some lenders stressing at 8.5% and beyond. There is also potential to revisit the 15% ceiling on lenders offering income multiples above 4.5 times, especially for smaller lenders who target first-time buyers, who may be disproportionally affected by this. No one wants a return to unstable lending, but there appears to be room for a touch more sensible risk.