A fifth of Gen Z would move 25 miles or more for affordable housing
- Price is the top priority listed by Gen Z for finding a home (24 per cent), with location the aspect most compromised for affordability (21 per cent)
- Barclays Mortgage data shows the average deposit fell -16.4 per cent year-on-year in May, however it remains the top barrier to homeownership reported by renters
- Nine in 10 buyers and sellers report delays in completing purchases due to conveyancing and exchange issues, with timelines rising 21.7 per cent year-on-year
- Homeowners continue to adapt to market conditions, with 42 per cent of mortgage holders saying they are now more likely to lock in their remortgage rate early
- Barclays Property Insights analyses proprietary mortgage data alongside consumer research to uncover the key trends shaping the UK housing market
Barclays Property Insights shows that housing market confidence is stable and average deposit requirements are falling. However, affordability remains a challenge for aspiring homeowners, with younger buyers compromising on location to get onto the property ladder. Meanwhile conveyancing and process delays cause completion timelines to slow across the market.
Confidence in the UK housing market strengthened to 26 per cent in May from 23 per cent in April, indicating a modest improvement in sentiment. However, renters remain hindered by affordability concerns. The cost of a deposit needed to buy a home (37 per cent) and high property prices (36 per cent) were cited as the biggest barriers to homeownership for renters, compared to just 16 per cent highlighting monthly mortgage payments.
Gen Z prioritises price over place
Among Gen Z (18-29-year-olds), price is the most important factor when buying a home (24 per cent), ahead of overall location (19 per cent) and neighbourhood quality or safety (17 per cent). However, a quarter (25 per cent) of Gen Z renters say they cannot afford to buy in their desired area.
Many are willing to make compromises. Of those who say price is their top priority, nearly one in five Gen Z (21 per cent) 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 per cent vs 11 per cent for Gen Z), but not outdoor space (8 per cent vs 18 per cent Gen Z).
Deposits decline, but regional gaps remain
One in seven Gen Z adults (14 per cent) report changing their budget or lowering their housing expectations due to affordability pressures. The appetite to buy is nevertheless strengthening; 16 per cent of Gen Z renters say they are actively searching for a property to purchase, up 9 per cent month-on-month.
Average deposit values across all ages fell -16.4 per cent 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 per cent to £136,057, while the South East and East Anglia also saw a significant average decrease.
| Average deposit values by region – Barclays Mortgages | |||
| Region | May 2025 | May 2026 | YoY difference |
| East Anglia | £72,014 | £55,063 | -23.5% |
| East Midlands | £49,439 | £42,237 | -14.6% |
| Greater London | £186,960 | £136,057 | -27.2% |
| North | £36,514 | £36,794 | 0.8% |
| North West | £46,200 | £45,991 | -0.5% |
| Northern Ireland | £35,679 | £41,008 | 14.9% |
| Scotland | £45,166 | £38,606 | -14.5% |
| South East | £91,231 | £70,454 | -22.8% |
| South West | £67,152 | £63,204 | -5.9% |
| Wales | £50,182 | £40,930 | -18.4% |
| West Midlands | £50,651 | £42,605 | -15.9% |
| Yorkshire & Humberside | £46,775 | £42,749 | -8.6% |
| Overall | £68,435 | £57,209 | -16.4% |
A two-speed market: transactions delayed while remortgaging accelerates
Delays and complications in house purchases have increased. Nine in 10 (88 per cent) buyers and sellers from this year report experiencing delays, while 29 per cent have had a property purchase fall through. This is reinforced by Barclays Mortgage data, which shows that the average time from final mortgage offer to completion date has increased by 21.7 per cent year-on-year. The most common sticking points cited are conveyancing issues (21 per cent), estate agent delays (19 per cent) and difficulty finding suitable properties (18 per cent).
Uncertainty is also affecting some households’ plans. One in three consumers (30 per cent) say they are now more likely to delay buying or selling because of economic volatility, while a third (32 per cent) are increasing their savings or cutting back on spending in case of future impacts on their costs.
The rate environment is simultaneously driving a more proactive response among existing homeowners. More than two-fifths (42 per cent) of mortgage holders surveyed say they are now more likely to lock in an interest rate for remortgaging early. This coincides with an increase in remortgage activity – which accounted for 40.6 per cent of Barclays Mortgage completions in May, up from 30.7 per cent a year earlier.
Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, said:
“Adaptability has become the hallmark of the modern buyer. First-timers remain constrained by affordability, but will be flexible to achieve their goals, making trade-offs on location or property features to get on the ladder.
“Meanwhile, existing homeowners are acting more decisively, with many locking in rates earlier, or shifting their plans in response to volatility. Together, these trends may make for a more complex housing landscape, but reflect a clear determination among consumers to take control of their financial future.”
Julien Lafargue, Chief Market Strategist at Barclays, said:
“The expected reopening of the Strait of Hormuz and the associated drop in oil prices mean that inflationary pressures may be more contained than feared in the coming months. This should give the Bank of England some breathing room, allowing the central bank to keep interest rates unchanged for the time being. Although any renewed political uncertainty could represent a headwind in the short-term, the picture appears to be gradually improving for the UK real estate market.”
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