The mutual said rising costs were causing delays to homeownership and people’s ability to build a nest egg.
Nationwide has urged the government to commission an independent review of the first-time buyer market to address the challenges in the sector.
This includes the gap between income growth and house price growth, the supply of homes, the need for planning reforms and the impact of regulations on mortgage lending.
Nationwide added: “A review would help the government produce a sustainable plan to support people hoping to buy a home of their own.”
Bring back the HTB ISA
The mutual has also asked for the government to reintroduce the Help to Buy ISA, citing the success of the previous scheme. It said the monthly amount which could be saved should be increased from £200 to £500. It also said the bonus should be increased to align with current house prices.
Rachael Sinclair, director of mortgages and financial wellbeing for Nationwide, said: ‘‘Homeownership for many first-time buyers is a huge challenge.
“Reintroducing the Help to Buy ISA would make a big difference to building a deposit, while a review of the first-time buyer market would help determine the right solutions for helping people get a home of their own.”