Affordability pressures continue to shape buying decisions across the housing market, with younger buyers increasingly willing to compromise on location to get onto the property ladder, according to Barclays’ latest Property Insights report.
The research found that one in five Gen Z buyers would move more than 25 miles from their preferred area in search of a more affordable home, while a quarter said they could not afford to buy where they would ideally like to live.
Although average deposit requirements fell by 16.4% year-on-year to £57,209, affordability remains a significant barrier to homeownership. More than a third of renters cited saving for a deposit as their biggest challenge, while 36% pointed to high property prices.
For estate agents, the findings suggest buyer demand is increasingly being driven by affordability rather than location, particularly among younger purchasers. Price was identified as the most important factor for Gen Z buyers, ahead of location and neighbourhood considerations.
The report also highlights continued frustration with transaction times. Nearly nine in 10 buyers and sellers said they had experienced delays during the home-moving process, while 29% reported having a purchase fall through altogether.
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Average deposit values by region – Barclays Mortgages |
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| Region | May 2025 | May 2026 | YoY difference |
| East Anglia | £72,014 | £55,063 | -23.5% |
| East Midlands | £49,439 | £42,237 | -14.6% |
| Greater London | £186,960 | £136,057 | -27.2% |
| North | £36,514 | £36,794 | 0.8% |
| North West | £46,200 | £45,991 | -0.5% |
| Northern Ireland | £35,679 | £41,008 | 14.9% |
| Scotland | £45,166 | £38,606 | -14.5% |
| South East | £91,231 | £70,454 | -22.8% |
| South West | £67,152 | £63,204 | -5.9% |
| Wales | £50,182 | £40,930 | -18.4% |
| West Midlands | £50,651 | £42,605 | -15.9% |
| Yorkshire & Humberside | £46,775 | £42,749 | -8.6% |
| Overall | £68,435 | £57,209 | -16.4% |
Conveyancing issues were the most commonly cited cause of delays, followed by estate agency-related issues and a lack of suitable properties. Barclays’ mortgage data shows the average period between final mortgage offer and completion increased by 21.7% compared with a year earlier.
Despite ongoing challenges, confidence in the housing market edged higher in May. Barclays found that 16% of Gen Z renters are actively searching for a property to buy, while existing homeowners are becoming more proactive about refinancing, with remortgages accounting for 40.6% of mortgage completions, up from 30.7% a year ago.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “Adaptability has become the hallmark of the modern buyer. First-timers remain constrained by affordability, but will be flexible to achieve their goals, making trade-offs on location or property features to get on the ladder.
“Meanwhile, existing homeowners are acting more decisively, with many locking in rates earlier, or shifting their plans in response to volatility. Together, these trends may make for a more complex housing landscape, but reflect a clear determination among consumers to take control of their financial future.”
Julien Lafargue, chief market strategist at Barclays, commented: “The expected reopening of the Strait of Hormuz and the associated drop in oil prices mean that inflationary pressures may be more contained than feared in the coming months. This should give the Bank of England some breathing room, allowing the central bank to keep interest rates unchanged for the time being. Although any renewed political uncertainty could represent a headwind in the short-term, the picture appears to be gradually improving for the UK real estate market.”
