A leading lender plans to launch a 100% mortgage aimed at would-be first-time buyers who cannot save for a deposit, the first since the 2008 financial crisis.

Standard home loans where the borrower does not have to put down a deposit used to be fairly commonplace but the last was axed in the wake of the financial crisis.

However, Skipton Building Society is getting ready to launch a mortgage targeting those “trapped in rental cycles” and who do not have access to “the bank of mum and dad,” and so are therefore unable to save up enough for a home deposit.

People selling their homes have typically had to settle for below the asking price in recent weeks, according to Zoopla, which is predicting house prices will fall by about 5% next year.

The average price achieved in recent weeks has been 3% below a seller’s asking price, when for much of 2021 and the first half of this year it matched the asking price, the property website said. Zoopla said it expects discounts to increase further in 2023.

Since the start of September, one in nine homes have had their original asking price reduced by 5% or more, Zoopla said, and a quarter have had the price cut to some degree, according to the index covering the month of October.

Asking price reductions are greatest in southern England, where sales volumes have fallen the most, with almost one in three homes in the south-east and east of England reducing asking prices to attract demand, the report said.

Annual house price growth slowed to 7.8% last month, down from 8.1% in September and the lowest since November 2021, according to Zoopla data. Demand has fallen 44% since September’s disastrous mini-budget, which drove mortgage rates sharply higher and led to hundreds of deals being pulled from the market.

New sales have dropped by up to 50% in previous hotspots and areas where higher mortgage rates will hit buying power hardest – in southern England, east Midlands and Wales. Sales have fallen less in more affordable areas and in London where market conditions have been weaker. Zoopla expects mortgage rates to fall to about 5% at the turn of the year, from about 6% now for two-year and five-year fixed deals.

Whichever new prime minister emerges, current Conservative politics makes it unlikely we’ll see a significant new expansion of social rented housing any time soon. But not so long ago another Conservative prime minister, Theresa May, talked of the need for “a new generation of council homes to help fix our broken housing market”. Opposition parties and the UK’s devolved governments remain committed to a large increase in public housing. Meanwhile, there are still an estimated 1.6m households in England with unmet housing needs best provided by social renting. As we plan for the future, now is a good time to ask what we can learn from past social housing schemes.

The most important lesson is simply that we can build social housing at scale when the political will exists. Between 1945 and 1979, the country built an average of 126,000 council homes annually. The largest number built in a single year, 219,000, was achieved by a Conservative government in 1953. At times, that pace and scale could be problematic. Financial constraints frequently limited the best of what might have been achieved. There were perhaps too many poorly constructed high-rise dwellings, too many large and anonymous suburbs, but the overriding goal – when, even in 1948, 54% of British households lacked their own bathroom – was to house all our people decently and clear the slums.

The rural economy is being held back by a lack of affordable housing, supermarket price-wars, poor public transport and broadband connections, according to a new report.

The cross-party group of MPs and peers found the rural economy was 18% less productive than the national average. If this gap was reduced it could add £43bn to the UK economy.

The government said it welcomed the report, and that it was providing £2.6bn to rural areas.

The All-Party Parliamentary Group (APPG) on the Rural Powerhouse heard evidence from over 50 rural organisations including charities, campaign groups, academics, and business leaders. 

Calling it “one of the most comprehensive inquiries into the productivity of the rural economy” the co-chairman of the APPG, Lord Cameron of Dillington, said, “It is vital that government understands that rural Britain is not a museum, but instead is an important part of the national economy that deserves the chance to succeed.”

A survey revealed last year that 41% of councils do not employ any urban designers, and 76% lack access to any advice on architecture.

The change to the country’s planning rules was part of a package of measures that ministers claimed would ensure new housing was “beautiful and well-designed”. The government is setting up an “Office for Place” to help “communities encourage development they find beautiful, and refuse what they find ugly”.

The report, published by the UCL-based Place Alliance, highlights 12 schemes rejected on design grounds since last July. The inspectorate found proposals for an unattractive block of 15 flats on the site of a demolished car park in Crawley in West Sussex would offer “unsatisfactory living conditions”. Some flats had limited natural light and the outside spaces were close to roads and railway lines. Others lacked privacy as windows were next to people passing on a walkway and close to cars queueing on a traffic gyratory system.

The inspectorate also backed Braintree district council’s efforts to block two estates on the edges of villages in Essex, where developers were trying to squeeze in large numbers of houses, jarring with houses nearby. Officials also turned down an appeal relating to five tower blocks on the former Westferry newspaper printworks site in east London. It was ruled the scheme – which led to a row about media mogul Richard Desmond’s contact with ministers tasked with planning decisions – would harm appreciation of the Greenwich world heritage site.

A new government-backed body set up to police the building industry faces claims that it lacks representation from architects, ordinary homeowners and BAME communities whose Covid-19 death rates have been linked to poor housing standards.

Labour had claimed the New Home Quality Board [NHQB] lacked independence as it was chaired by a Tory MP and Conservative-linked developers sit on the board alongside her. On Friday it announced a new CEO and chair as it moved to what it described as its “full operational stage”.

The body has published a code of practice for the housebuilding industry and is working to oversee the creation of the New Homes Ombudsman Service, due to launch in the Summer, with the stated aim of providing “robust independent redress” for new-build buyers who have “issues with their new home or developer”.

However, the NHQB was criticised by Ben Derbyshire, a former president of the Royal Institute of British Architects, who questioned what he described as an “inexplicable absence of anyone with a design background or training on the board”.

“Design in British housing, especially speculative mass housing, is generally very poor. The exceptions to this represent the minority of housebuilding and renovation but these exceptions should become the rule. Good housing architects are notably absent from housebuilding and that is never going to change so long the profession is not represented on the New Homes Quality Board,” he said.

He expressed concern about the extent of representation of people from BAME communities on the board after the pandemic had showed up the correlation between poor housing standards, overcrowding, disadvantage and death from Covid among ethnic minorities.

A shortage of homes for sale last month sent house price growth spiralling for the seventh consecutive month to 12.6%, prompting concerns that property values are moving further out of reach of first-time buyers.

Prices of the average home increased by 1.7% in February to more than £260,000 for the first time, said the building society Nationwide, accelerating the pace of growth from 11.2% in January.

Analysts, who expected a smaller increase in prices last month, said the ending of Covid restrictions enforced because of the Omicron variant and the threat of several interest rate rises this year from the Bank of England also spurred buyers to secure homes ahead of the peak Easter buying period.

Stiff competition between lenders for mortgage business, which has driven the offers for fixed-rate mortgages lower in recent months, was another factor driving prices higher.

Nationwide said the increase pushed the average British house price to £260,230, after soaring by almost £30,000 over the past 12 months – the biggest annual increase in cash terms that its monthly index has recorded in more than 30 years of its existence.

Developers are “gorging” on greenfield sites in rural areas to build despite a record amount of brownfield land being available for construction, a charity has said.

A report by the CPRE, an organisation that aims to protect the countryside, said there is enough brownfield land in England to accommodate 1.3 million homes.

Despite this, CPRE said “wasteful and immoral” developers are choosing to concrete over greensites because it is cheaper. Emma Bridgewater, the charity’s president, is calling for councils and planners to take a “brownfield first policy”.

“We need to direct councils and developers to use these sites – often in town and city centres where housing need is most acute – before any greenfield land can be released,” she said.

“It is wasteful and immoral to abandon our former industrial heartlands where factories and outdated housing have fallen into disrepair. Developing brownfield is a win-win solution that holds back the tide of new buildings on pristine countryside and aids urban regeneration at a stroke.”

The move towards countryside living is raising rural renting costs in Norfolk, says Rightmove.

Renters have turned their sights to the countryside, as homebuyers did before them.

New data from property website Rightmove shows that rental prices in rural and suburban areas in the UK have jumped 11pc compared to 2pc in urban areas.

Rightmove claims that this is due to a longing for outside space and separation from cities.

Rent prices in rural areas have risen by £122 a month, from £1,142 in February 2020 to £1,264 in October 2021.

Demand for rural homes is up 224pc and availability is down by 61pc, and demand for suburban homes is up 155pc and availability is down 45pc.

Young and low paid workers in tourist hotspots are increasingly being priced out of homes, new analysis has shown.

House prices rose up to three times faster in some rural and coastal areas compared to the national average in July, Office of National Statistics (ONS) figures have revealed.

North Devon has seen a rise of 22.5%, while the UK average rose by 8%.

A lack of affordable homes could be contributing to hospitality struggling to fill vacancies, the ONS said.

The average cost of rent in the south-west of England rose by 2.6% in the year leading to August, more than double the 1.2% increase for the UK as a whole.

The ONS said the growth in demand for rental properties “appears to be exceeding supply”.

It added the fall in supply of letting was most widespread in the South West, East and West Midlands.

The ONS said: “Rising house prices and private rents mean that some workers are at risk of being priced out of living in rural and coastal areas, contributing to skill shortages in the tourism and hospitality industries that their local economies rely on.”

One couple from Barnstaple say they have been looking for a new home for five months with no success.

Sarah-Jane and Lauren Tolley have three weeks to find somewhere to live after being asked to leave by their current landlady through a no-fault eviction.

Section 21 notices allow landlords to evict renters without a reason after their fixed-term tenancy period ends.