Barclays has revealed that one in five Gen Z individuals, those born between 1997 and 2012, would be willing to move 25 miles or more to secure affordable housing. Price is the top priority for this generation when searching for a home, cited by 24% of respondents, with location being the most common compromise made for affordability, at 21%.
Deposit Challenges Persist
According to Barclays Mortgage data, the average deposit fell by 16.4% year-on-year in May. Despite this decline, the deposit remains the primary barrier to homeownership reported by renters. The data highlights ongoing affordability pressures in the UK housing market.
Delays in Property Transactions
Nine in ten buyers and sellers report delays in completing purchases due to conveyancing and exchange issues, with timelines increasing by 21.7% year-on-year. Additionally, 42% of mortgage holders say they are now more likely to lock in their remortgage rate early, according to the bank, which has branches in Birmingham.
Gen Z Adapting to Affordability Pressures
One in seven Gen Z adults (14%) report changing their budget or lowering their housing expectations due to affordability pressures. Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, commented: "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."
Market Outlook
Julien Lafargue, Chief Market Strategist at Barclays, added: "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."
