Renters are still hitting affordability issues according to Barclays.

It says 58% of tenants say their rent has increased in the last 12 months, and 29% in the last six months. 

The bank says this is most acute for Gen Z (18–27-year-olds), with 36% of them reporting a rise in the last six months. 

What the bank calls “rentflation” has left the average UK renter facing increases £105.90 out of pocket each month, with one in five citing rental rising costs as one of the biggest barriers to owning a home. 

The impact is steeper among younger adults, with Gen Z reporting an average increase of £134.70 per month, the equivalent of £1,616 a year.

Almost six in 10 Gen Z renters are currently saving for a deposit to buy a home, while 40% believe homeownership is within reach in the next five years, compared to 23% across all ages. 

However, rentflation’s squeeze on savings means that nearly two-thirds of Gen Z renters say that they would find it impossible to buy a home without an inheritance or a loan from a family member.

Meanwhile, Barclays’ proprietary data revealed that the average age of a first-time buyer in the UK rose to nearly 34 in 2024, up from 32 only two years earlier, as homeownership becomes more challenging.

Sian McIntyre, Managing Director of Mortgages and Savings at Barclays, says: “Our latest data indicates that prospective buyers are adapting their behaviour to get ahead of some of the volatility in the market. Encouragingly, amidst rising house prices, uncertainty around interest rates, and the upcoming changes to stamp duty, consumer confidence in the housing market is staying the course.

“Renters are still determined to overcome barriers to homeownership, with this resilience testament to the value individuals place on investing in property.“