Although they’ve become known as ‘Generation Rent’ owning a home for Gen Z isn’t as distant a possibility as you might think.
The doom-and-gloom headlines would have you believe that homeownership is a pipe dream for anyone born after the mid-1990s.
Scroll through social media, and you’ll find an avalanche of content reinforcing the idea that Generation Z, those currently aged between 18 and 29, will never own a home, priced out permanently by soaring house prices, brutal mortgage rates, and spiralling rents.
“I’m a Gen Z estate agent, and I spend a lot of time online, so I see the content that’s shaping the way young people think about property. The overwhelming message is that homeownership is out of reach for our generation, and I completely understand why people feel that way. But when you sit down with the actual data, it tells a more complicated and hopeful story” says Josh Endacott of 1st Avenue.
Analysis of the latest government housing affordability figures suggests the gap between earnings and house prices has narrowed in England. In 2025, the typical home cost 7.6 times median full-time earnings, the most favourable affordability ratio recorded since 2015.
The improvement appears to have been driven by earnings rising much faster than house prices since 2021, with wages up 25% compared with a 5% increase in median sale prices.
“One of the biggest myths I encounter is that you need a huge deposit even to begin the conversation,” says Endacott. “Yes, the national average deposit is significant, but that figure is skewed heavily by London and the South East.”
“In large parts of the Midlands and the North, first-time buyer prices are well under £200,000, and there are now mortgages available from major lenders with deposits starting from as little as £5,000. The first step for a lot of Gen Z buyers isn’t saving more, it’s widening their search area.”
“People assume that where they grew up, or where they currently rent, is where they have to buy. But remote and hybrid working has genuinely changed that calculation for many young people. You can earn a city salary and buy in a town where your money goes three times as far.”
That strategy is already paying off for young buyers outside the traditional hotspots.
Barclays data shows a third of Gen Z (34%) are actively hoping to buy a new or first home in 2026, more than double the national average of 16%, while confidence in the housing market among 18 to 34-year-olds climbed from 33% in January 2025 to 40% by December.
The affordability ratio in the North East of England stands at just 5.0, compared to 10.6 in London, meaning an average-priced home in the region is achievable on an average salary without the eye-watering stretch so often assumed.
Hyndburn in the North West had the lowest affordability ratio according to the agency’s analysis with 4.08, while the regions average was 5.92
“The second myth is that schemes like the First Homes are complicated or not worth it. I’d argue they’re one of the most straightforward pieces of financial planning a young person can do.”
The First Homes Scheme in England allows eligible buyers to purchase selected new-build homes at 30% to 50% below market value, with post-discount price caps that vary by location.
Additionally, the government’s permanent Mortgage Guarantee Scheme, launched in July 2025, supports the availability of 91% to 95% loan-to-value mortgages, helping eligible buyers purchase with deposits as small as 5%.
“I do want to be honest though,” continues Endacott.
“For those in London and the South East, or those without family support, the challenges are very real. Over half of all first-time buyers still rely on some financial assistance from family, and for some, that simply isn’t an option. That inequality matters, and it shouldn’t be glossed over. But the answer to that isn’t to assume homeownership is impossible, it’s to understand exactly which levers are available and to pull them in the right order.”
An estimated 173,500 first-time buyers received financial assistance from the so-called Bank of Mum and Dad in 2024, receiving on average £55,572 each, equating to just over half of all first-time buyers.
“The narrative that Gen Z will never own homes is becoming a self-fulfilling prophecy, and that worries me.”
“If young people believe it’s impossible before they’ve even looked into it, they won’t save, they won’t research schemes, and they won’t explore areas where their money could realistically get them on the ladder.”
“The data shows affordability is improving, lenders are innovating, and a third of Gen Z are actively planning to buy this year. Rather than seeing a generation stuck in the cycle of renting, the numbers show a generation beginning to buy in.”
Josh Endacott is assistant branch manager at 1st Avenue
