More than a third of Generation Z adults are hoping to buy a home during 2026, challenging the widespread perception that homeownership is beyond the reach of younger people.
Barclays data shows 34% of Gen Z respondents are actively hoping to buy a new or first home this year, more than double the 16% recorded across the wider population.
Housing-market confidence among people aged between 18 and 34 also increased from 33% in January 2025 to 40% by December.
Separate analysis of Office for National Statistics data by estate agency 1st Avenue suggests affordability has improved, although significant regional differences and deposit barriers remain.
WAGES OUTPACE HOUSE PRICES
The typical home in England cost 7.6 times median full-time earnings during 2025—the most favourable affordability ratio recorded since 2015.
According to 1st Avenue, wages increased by 25% between 2021 and 2025, compared with growth of 5% in median property prices.
Josh Endacott (main picture, inset) of 1st Avenue says: “I’m a Gen Z estate agent, and I spend a lot of time online, so I see the content that’s shaping the way young people think about property.
“The overwhelming message is that homeownership is out of reach for our generation, and I completely understand why people feel that way. But when you sit down with the actual data, it tells a more complicated and hopeful story.”
REGIONAL DIVIDE REMAINS STARK
The affordability ratio stands at 5.0 in the North East, compared with 10.6 in London. Hyndburn in Lancashire records the lowest ratio identified by the agency at 4.08, while the North West average is 5.92.
Endacott says widening the geographical search could help some buyers benefit from lower prices, particularly where remote or hybrid working makes commuting less important.
He adds: “People assume that where they grew up, or where they currently rent, is where they have to buy. But remote and hybrid working has genuinely changed that calculation for many young people. You can earn a city salary and buy in a town where your money goes three times as far.”
DEPOSIT SUPPORT STILL CRITICAL
Government initiatives include First Homes, which offers eligible buyers selected new-build properties at discounts of between 30% and 50%. The permanent Mortgage Guarantee Scheme also supports mortgages at between 91% and 95% loan-to-value.
However, access to family assistance remains a major dividing line. An estimated 173,500 first-time buyers received help from relatives during 2024, averaging £55,572 each.
Endacott adds: “For those in London and the South East, or those without family support, the challenges are very real.
“But the answer to that isn’t to assume homeownership is impossible – it’s to understand exactly which levers are available and to pull them in the right order.”
