Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
One in Five Gen Z Adults Saving Nothing Towards a First Home Deposit
Nearly one in five Gen Z adults are putting nothing aside for a house deposit, despite almost half expecting to buy their first home before they turn 30, new research has found. The study, commissioned by Barratt Homes, surveyed Brits aged 18 to 29 who have not yet bought a home.
The Savings Gap
The research found that 18% of Brits aged 18 to 29 who have yet to buy a home are not currently saving anything towards a deposit. Among those who are saving, the average amount put away is £340 a month, though levels vary considerably: 20% are saving between £100 and £299 each month, while another 20% are saving between £500 and £699.
Despite the financial pressure, optimism remains high. Some 48% of Gen Z respondents said they expect to buy their first property before the age of 30, while 25% expect to purchase between 30 and 34 and 16% believe they will buy after 35. However, 11% said they do not expect to be able to buy a home at all.
How Would-Be Buyers Are Raising Deposits
Traditional saving is being supplemented by additional sources of income. Almost a quarter (24%) of respondents said they are taking on extra shifts or overtime to boost their savings, while 21% are working a second job or running a side hustle. Cutting non-essential spending was the most common approach, cited by 38%, and 19% said they were living with their parents for longer to reduce costs.
Almost half (49%) of those surveyed are putting money into a dedicated savings account, making it the most common saving method. Other approaches included using cashback or rewards apps (20%), selling unwanted items (19%) and investing in stocks and shares (16%).
Limited Awareness of Support Schemes
Awareness of government-backed home-buying support appears limited, with fewer than one in five respondents saying they were familiar with schemes including First Homes and Shared Ownership.
Adrian MacDiarmid, head of mortgage lender relations at Barratt Homes, said the findings showed optimism among younger people despite the challenges of saving for a deposit. "The results from our survey paint an optimistic picture among Gen Z when it comes to their prospects of buying a home, with 48% believing they will get on the property ladder before the age of 30," he said. "However, there is clearly still some way to go, as cost-of-living pressures continue to make it difficult for younger people to put money aside towards a deposit."
What It Means for Letting Agents
With a significant share of younger adults unable to save and some expecting never to buy, demand for rented accommodation among 18 to 29 year olds looks set to persist. That is a relevant consideration for letting agents and inventory clerks managing stock in this demographic.
Source: Mortgage Strategy