A new Barclays Bank survey says Gen Z – those aged 18 to 29 – are unhappy at their inability to afford to buy.
The cost of a deposit needed to buy a home (37%) and high property prices (36%) were cited as the biggest barriers to homeownership for renters, compared to just 16% highlighting monthly mortgage payments.
Among Gen Z, price is the most important factor when buying a home (24%), ahead of overall location (19%) and neighbourhood quality or safety (17%).
However, a quarter (25%) of Gen Z renters say they cannot afford to buy in their desired area.
Of those who say price is their top priority, nearly one in five Gen Z (21%) would move over 25 miles away, with location the most common trade off in favour of affordability.
By comparison, Baby Boomers (62-80 year-olds) are more likely to compromise on the property’s condition (22% vs 11%for Gen Z), but not outdoor space (8% vs 18% Gen Z).
One in seven Gen Z adults report changing their budget or lowering their housing expectations due to affordability pressures. The appetite to buy is nevertheless strengthening; 16% of Gen Z renters say they are actively searching for a property to purchase.
Average deposit values across all ages fell -16.4% year-on-year to £57,209, though figures vary significantly across the UK.
In most regions there was a decline, due to a range of factors such as stagnating house prices and reduction in sales of high-value properties.
London recorded one of the sharpest drops in deposit size, down 27.2% to £136,057, while the South East and East Anglia also saw a significant average decrease.
