Is homeownership becoming a fantasy for Britain’s under-35s?

Skyrocketing rents, stagnant wages, and higher everyday costs make saving for a deposit and securing a mortgage increasingly difficult.

As a residential property lawyer, I see how these pressures shape younger households’ opportunities. With the upcoming Budget and Renters Rights Bill adding uncertainty, planning and professional guidance have never been more crucial.

The rental sector often serves as a temporary solution rather than a springboard. With higher rents and limited availability, younger people are finding it harder to save for a deposit.

Last week's figures paint a picture that looks reassuring at first glance. According to UK Finance, mortgage arrears have declined to 84,100 homeowner mortgages, representing just under one percent of all mortgages, while re-possessions remain well below historical averages.

Meanwhile, GDP grew by one tenth of a percent in the third quarter of 2025, according to the Office for National Statistics. The economy, we're told, is holding steady.

However, for anyone under 35 years old trying to get onto the housing ladder, these statistics don't match their experience. Lloyd's statistics show the average first time buyer deposit now stands at £61,090, approximately twenty percent of the average house price. In London, that figure more than doubles to £124,688.

Finder research shows that nearly half of people aged 25 to 34 have £1,000 or less in savings, highlighting the nauseating gap between current savings and deposit requirements.

What we're witnessing represents a shift in affordability pressures. It's not just about the cost of living anymore but the cost of building toward future stability.

The war on landlords has been presented as a noble cause, but the reality is that private rents have increased by nearly eight percent in the year according to the ONS, outpacing wage growth and making it harder to set aside meaningful savings.

The upcoming Budget presents opportunities as well as challenges. Potential reforms such as changes to stamp duty could make it easier for first-time buyers to enter the market.

On the other hand, proposals like increased taxation on rental income could reduce rental supply, which may put additional pressure on younger tenants.

Where older homeowners delay moving due to possible tax changes, the availability of starter homes could remain an issue. It signals that the housing market needs attention.

These aren't just statistics. They are young professionals who are working hard and trying to financially plan.

For the UK’s under 35 year olds, the economy may look steady on paper, but practical challenges remain.

While the upcoming Budget could ease the first steps onto the ladder or introduce new headaches, until wider cost-of-living concerns are addressed, it all feels somewhat inconsequential.

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Clare Andrews is a partner at Moore Barlow and leads the residential property team, advising on high value transactions across town, coastal and country markets.

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