New research from Barclays paints a stark picture for renters in the UK: despite deposit costs falling by an average of 16.4% year-on-year, the dream of homeownership remains elusive for many due to persistently high property prices and substantial upfront expenses. The bank's Property Insight report highlights that deposits are still the primary barrier to buying a home, cited as a concern by 37% of renters.
High property prices closely follow, with 36% of renters naming them as a major obstacle – significantly outweighing worries about monthly mortgage payments (16%). This comes as the Office for National Statistics (ONS) reported a 3.8% increase in UK house prices over the 12 months to April 2026, pushing the average price to £270,000.
For Generation Z, price is the top priority when searching for a home, with 24% citing it as their main concern. To navigate these financial pressures, many are making significant compromises on location – one in five Gen Z individuals (21%) are prepared to move more than 25 miles from their preferred area to secure an affordable property.
Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, commented that while adaptability has become crucial for modern buyers, first-time buyers are still heavily constrained by affordability. They are increasingly willing to make trade-offs on location or property features to get onto the housing ladder – with existing homeowners reportedly acting more decisively in response to market volatility.
The research also reveals increasing complications within the property market: a significant 88% of buyers and sellers reported experiencing delays in their transactions, while nearly three in ten (29%) have seen a property purchase fall through entirely. Economic uncertainty is influencing consumer behaviour, with 30% now more inclined to delay buying or selling property, and 32% actively increasing savings or reducing spending to mitigate potential future cost impacts.