Millennials and the Challenge of Buying Homes: A Turning Point?
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Millennials facing challenges in buying homes, but signs of improvement
By Dharshini David, Deputy economics editor, Raphael Sheridan, Economics reporter, and Jess Carr, Data designer
Published 21 August 2026, 00:10 BST
Leaving education, getting a job, buying a home, and starting a family – paths once straightforward for previous generations – have become more treacherous for many millennials.
However, there are signs that the situation might be improving.
Is it getting easier to buy a home?
Today’s young adults, born in the UK in the mid-1990s, have about a 25% chance of owning their home, a stark contrast to their 20-something counterparts in the 1990s, who were almost twice as likely, and the previous generation, who were even more so.
Long-term trends and causes
The primary factor behind this shift is the persistent outpacing of income growth by property prices across multiple decades.
Housing market challenges
- Cost of building: Inflation, from land prices to builders’ wages and materials like timber, steel, plasterboard, concrete, and insulation, has been a significant contributor. The war in Ukraine and Iran has further exacerbated costs.
- Skilled labor shortage: Brexit has compounded a pre-existing shortage of skilled construction workers.
- Planning regulations: While these regulations protect the environment and ensure safety, they can add to building costs.
Increasing costs and deposits
As a result, the deposit needed to buy a house has reached tens of thousands, varying widely across the UK. Saving for a deposit has become particularly challenging for young people paying private rent, which typically accounts for a third of their income.
A turning corner?
Despite these challenges, there are signs of improvement:
- Slower house price growth: In recent years, house prices have risen more slowly than wages, making savings easier.
- More flexible lending: Some lenders are offering smaller deposits and larger loans with longer repayment periods.
- Changing attitudes: A growing number of young adults are opting to live at home to save money.
