May Property Insights: Gen Z rethink where - and how - they buy

Evidence tier: A1 Evidence type: Auto-discovered official publication Source: Barclays browser-verified publication index Official publication date: 2026-06-23 Captured: 2026-07-18T16:32:07.793Z

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June 23 2026

• Gen Z is prioritising affordability over location, with 24% citing price as their top factor, while 25% say they cannot afford their preferred area

• Compromise is reshaping young buyer behaviour, with 21% trading off on location and nearly 1 in 5 willing to move 25+ miles to secure a home

• Deposits are falling, down -16.4% YoY to £57,209, with sharper declines in London (-27.2%) and the South East (-22.8%)

• The buying process remains slow and uncertain, with 88% of buyers and sellers experiencing delays and 29% seeing transactions fall through

• Remortgaging is accelerating despite weaker transaction flow, rising to 40.6% of completions, up from 30.7% a year ago

• Confidence is improving at 26%, but access remains the barrier, with deposits (37%) and house prices (36%) the top concerns

For the vast majority of us, trying to find the right property is a question of compromise.

It might hinge on the number of bedrooms, size of garden, or just how long the walk to the station is, but buying a property normally means some kind of trade-off.

And, in our May Property Insights, we can see that coming through most strongly for younger buyers, who are prepared to compromise on location to get onto the property ladder.

Prioritising price over place

Among Gen Z, price is reported to be the most important factor when purchasing a home, cited by 24%

In our data, we can clearly see that affordability is the key factor shaping how younger buyers approach the housing market.

Among Gen Z (18–29-year-olds), price is reported to be the most important factor when purchasing a home, cited by 24%, ahead of location (19%) and neighbourhood quality or safety (17%).

Yet a quarter (25%) of Gen Z renters say they cannot afford to buy in their preferred area. As a result, trade-offs are becoming more pronounced: nearly one in five Gen Z buyers prioritising price would be willing to move more than 25 miles, with location emerging as the most common compromise (21%).

In contrast, older cohorts are adjusting differently. Baby Boomers are twice as likely to compromise on property condition (22% vs 11% for Gen Z), but far less willing to sacrifice outdoor space (8% vs 18%), underlining a generational divergence in what “value” looks like.

At the same time, affordability pressures are prompting many young people to reset their expectations. One in seven Gen Z adults (14%) say they have already adjusted their housing budget or lowered their ambitions.

However, demand remains resilient and, in fact, is strengthening: 16% of Gen Z renters report they are actively searching for a home to buy, up from 9% in April.

This suggests that while financial constraints are shaping behaviour, they are not dampening intent, instead driving a more pragmatic, flexible approach to homeownership among younger buyers.

“The interest rate environment remains challenging, with domestic political uncertainty compounded with the ongoing geopolitical tensions in the Middle East. Even so, the UK economy continues to demonstrate resilience, suggesting that once these headwinds ease, conditions should improve.”

Julien Lafargue, Chief Market Strategist at Barclays

Across the wider market, declining deposit requirements are beginning to ease some barriers, although regional differences remain stark.

Average deposit values fell by 16.4 % year-on-year to £57,209, reflecting both slower house price growth and increased uptake of higher loan-to-value mortgages.

London saw one of the sharpest decreases, down by 27.2 % to £136,057, with similarly notable falls in the South East (-22.8%) and East Anglia (-23.5%).

Elsewhere, changes were more mixed, with deposits broadly flat in the North (+0.8 %) and North West (-0.5%), while Northern Ireland recorded a notable increase (+14.9 %). Together, these trends hint at a market that is becoming more accessible on paper, but where geography continues to play a defining role in shaping the path to homeownership.

Adaptability has become the hallmark of the modern buyer. First-time buyers remain constrained by affordability, but increasingly flexible, making trade-offs on location or property features to stay financially confident.

May property insights in numbers

The average deposit fell by 16.4% year-on-year in May

Confidence in the UK housing market rose to 26% in May, up from 23% in April

The cost of a deposit (37%) and high property prices (36%) are cited as the biggest barriers to homeownership for renters

14% say they have changed their budget or lowered their expectations for housing due to affordability pressures

A two-speed dynamic

Nearly nine in 10 (88%) buyers and sellers report experiencing delays, while nearly three in 10 (29%) have seen a purchase fall through altogether

Looking through our research, we can see that the UK housing market is increasingly characterised by a two-speed dynamic, where strong demand is colliding with persistent friction in the buying process.

Nearly nine in 10 (88%) buyers and sellers report experiencing delays, while nearly three in 10 (29%) have seen a purchase fall through altogether.

Barclays Mortgage data reinforces this trend, showing the average time between mortgage offer and completion has risen by 21.7% year-on-year.

The causes are varied but consistent: conveyancing issues (21%), estate agent delays (19%) and a shortage of suitable properties (18%) are the most commonly cited barriers.

This backdrop of delays is shaping behaviour more broadly, as uncertainty feeds into decision-making. Three in ten (30%) consumers say economic volatility is making them more likely to postpone buying or selling a home, while nearly a third (32%) are taking a more cautious financial stance by increasing savings or cutting back on spending in anticipation of future costs.

Together, these trends point to a housing market where intent remains, but timing has become more fluid, with many households choosing to wait for greater clarity before making their move.

At the same time, those already on the property ladder are responding more decisively to the rate environment. Over two-fifths (42%) of mortgage holders say they are now more likely to lock in an interest rate early when remortgaging.

This shift is visible in activity levels: remortgaging accounted for 40.6% of Barclays Mortgage completions in May, up sharply from 30.7% a year earlier. While transactions slow at the front end of the market, refinancing is accelerating, underlining how higher rates are not just dampening activity, but reshaping it.

Stabilising confidence

Confidence in the UK housing market edged higher in May, rising to 26% from 23% in April - a modest improvement in sentiment, but one I’m happy to see.

However, despite this gradual uplift affordability challenges persist, particularly for renters looking to step onto the ladder.

The upfront cost of buying continues to dominate concerns, with the size of a deposit (37%) and high property prices (36%) cited as the biggest barriers to homeownership.

By comparison, ongoing mortgage costs appear less of a constraint, with just 16% of renters identifying monthly repayments as their primary challenge, underlining how access, rather than affordability over time, remains the key hurdle.

The data in this article is taken from these sources:

Mortgage completions data sourced from Barclays Mortgages, covering the period 26 April 2025 – 25 May 2026.

The consumer research in this press release was carried out between 2 – 5 June 2026 by Opinium Research on behalf of Barclays. There were 2,000 respondents, providing a representative sample of UK consumers by age, gender, region, and income group.

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