Gen Z adults are more than twice as likely as the national average to be aspiring to buy a new or first home in 2026, research suggests.
The latest Property Insights report from Barclays shows 34% of 18-34 year-olds plan to buy a home this year compared with the national average of 16%.
But affordability remains a significant barrier. Nearly two-thirds (64%) of young prospective buyers cite high house prices as a challenge and an even greater proportion (61%) say mortgage rates have a bigger impact on affordability than prices themselves.
Despite this, almost six in 10 Gen Z buyers who are planning to purchase in 2026 have already saved what they consider a significant amount towards a deposit. On average, Gen Z savers report having accrued £19,442, excluding financial assistance or inheritance, compared to £25,760 among all hopeful buyers. Gen Z adults expect to add a further £8,998 to their deposit pot throughout 2026, versus a national average of £11,023.
While the Bank of Mum and Dad remains influential – supporting a third (34%) of recent Gen Z buyers – perceptions around the necessity of support from family or friends appear to be easing, with four in 10 (43%) Gen Z saying inheritance or financial assistance is now essential, compared with 63% at the start of 2025.
Barriers to homeownership improve
Across all age groups, perceptions around the barriers to homeownership eased over the course of 2025, driven by a rise in transactions involving more affordable properties and smaller deposits.
Barclays Mortgage Book data also shows that deposits below £20,000 accounted for more than a fifth (22%) of first-time buyer purchases in December 2025, up from just 13% a year earlier.
Meanwhile, the average first-time buyer deposit fell by 14% year-on-year, alongside increased appetite for higher loan-to-value borrowing.
This shift to smaller deposits and higher loan-to-values (LTVs) suggests that first-time buyers are finding it easier to get on the property ladder, as lenders continue to introduce innovative mortgage products to help more people access the market, Barclays said.
The changes to Stamp Duty bands in April 2025 also concentrated demand at the lower end of the housing market, the research found.
Homes priced under £300,000 made up 72% of first-time buyer purchases in May 2025, up from 60% in April. This preference has continued; homes under £300,000 accounted for around two-thirds (65%) of first-time buyer purchases in December 2025, and average nearly seven in 10 purchases (67%) since the change in thresholds.
Signs of confidence
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “Our latest data shows clear signs that confidence in the housing market is beginning to stabilise, despite ongoing affordability pressures. Younger buyers, particularly Gen Z, are highly motivated to get on the property ladder and lenders are helping to meet this demand by providing innovative products that increase how much customers can borrow.
“Many existing homeowners are preparing for higher borrowing costs in 2026 as they roll off 5-year fixed-rate deals, prompting a renewed focus on budgeting, saving and longer-term planning. Whether it’s building an emergency fund, remortgaging, or investing in home improvements and energy efficiency, households will be taking a more considered and proactive approach to managing their housing costs in 2026.”
More homes needed
Commenting on the report, Mary-Lou Press, president of NAEA Propertymark, said: “It is encouraging to see growing optimism among younger buyers and evidence that more flexible lending is helping some first-time buyers take their first step onto the property ladder. Smaller deposits and access to higher loan-to-value mortgages can make a meaningful difference, particularly at a time when rents remain high and saving is challenging.
“However, affordability pressures have not disappeared. House prices and mortgage rates continue to be significant obstacles for many, especially in areas where supply is constrained and over bidding is apparent. While lender innovation is welcome, it must be accompanied by sustained action to increase the supply of homes, built in the right places, across all tenures.
“As more homeowners prepare to remortgage in 2026 and face higher monthly costs, it is vital that consumers have access to clear advice and support. A stable housing market depends not only on confidence, but on long-term policies that improve affordability, boost supply, and support both first-time buyers and existing homeowners through periods of change.”
Source:- https://www.estateagenttoday.co.uk/breaking-news/2026/01/younger-buyers-need-less-help-to-get-on-the-property-ladder-research/