Is the Great British Dream of Homeownership Officially Dead?

Nearly one in three people who want to buy a home in the UK believe they will never be able to. That figure — 29% of aspiring homeowners according to the Building Societies Association — isn’t just a statistic. It represents millions of people who have done everything they were told to do: saved, worked, waited. And still, the door stays shut.

I’ve been writing about UK housing for long enough to notice a pattern. Every year, the same questions come up: Is it still worth buying? Am I too late? Will prices ever come down? But lately, the tone has shifted. People aren’t asking when they’ll buy anymore. They’re asking if. That change matters, because it signals something deeper than a market cycle — it suggests a generational break. Here’s what you actually need to know.

Owner occupation is still the largest tenure group in England, sitting at 65% of households. But that headline hides a split: the proportion of people who own outright has risen to 36%, while the share of those buying with a mortgage has fallen. More people are holding onto homes they’ve already paid off, and fewer are climbing onto the ladder. If you’re trying to get on that ladder, you’re not imagining the squeeze. It’s real, and it’s backed by data. For anyone navigating this market, getting professional legal advice on property transactions can help you avoid costly missteps when you do find the right opportunity.

What “generation rent” actually means for your finances

The term gets thrown around a lot, but the numbers behind it are stark. The BSA’s research found that 44% of non-homeowners say they expected to own by now. That’s nearly half of all people who don’t own a home, who planned their lives around an expectation that hasn’t materialised. The gap between aspiration and reality isn’t small — it’s a chasm.

What I notice most is how this shifts people’s financial behaviour. When you don’t expect to buy, you stop saving for a deposit and start spending on other things — or you stop planning altogether. That’s not laziness. It’s a rational response to a market that keeps moving the goalposts. The private rented sector now houses 19% of households in England, and it’s far more diverse than owner-occupied housing: only 68% of private renters have a household reference person born in the UK or Ireland, compared to 95% of owner-occupiers. That tells you something about who gets locked out, and why.

If you’re currently renting and wondering whether buying still makes sense, it’s worth reading about the rent vs buy trade-off in today’s market — the answer isn’t as simple as it used to be.

Why the dream is slipping away — and who it hits hardest

The biggest barriers to homeownership are financial, but they’re not all the same. Six in ten first-time buyers say raising a deposit is the main obstacle. More than half point to the cost of monthly repayments. And nearly half — 47% — say they simply can’t borrow enough, even when they have a decent income. That last one is worth pausing on. It means the problem isn’t just about saving. It’s about lending criteria that haven’t kept pace with prices.

Consider a typical scenario. A couple in their early thirties, both working, earning a combined £60,000. They’ve saved £25,000. In many parts of the country, that deposit covers less than 10% of an average home. They can afford the monthly payments on a 90% mortgage, but the lender’s stress tests and income multiples mean they’re offered far less than they need. They’re not bad with money. They’re just priced out by a system that assumes prices will stay high and wages will stay flat.

Regional differences make this worse. Mean weekly mortgage payments in London are £375 compared to £220 in the rest of England. Both have risen sharply from five years ago, when they were £263 and £170 respectively. Rents have followed the same pattern: private renters in London pay £393 a week on average, versus £207 elsewhere. The gap isn’t closing — it’s widening.

What I’d say to anyone in this position is: don’t assume the market will fix itself. The proportion of 25–44 year olds who feel homeownership is completely out of reach has risen from 27% in 2020 to 33% today. That’s not a blip. It’s a trend that has persisted through low interest rates, high interest rates, stamp duty holidays, and everything in between. If you’re waiting for a crash to make things affordable, you might be waiting a long time. A financial advisor can help you model different scenarios and figure out whether buying is realistic on your timeline — or whether renting and investing the difference makes more sense.

Where people go wrong when trying to buy a home

The mistakes I see most often aren’t about picking the wrong house. They’re about misunderstanding how the system works, and that misunderstanding costs people time, money, and hope.

Overestimating how much you can borrow

Nearly half of first-time buyers — 47% — say not being able to borrow enough is a major barrier. But many people don’t find this out until they’ve already fallen in love with a property. Lenders use income multiples, stress tests at higher interest rates, and affordability checks that factor in your actual spending, not your theoretical budget. Get a mortgage agreement in principle before you start viewing. It’s free, and it tells you your real ceiling.

Ignoring the hidden costs of buying

Stamp duty is now a barrier for 26% of buyers, up from just 7% three years ago. That’s a huge jump, and it reflects both threshold changes and price growth. But stamp duty isn’t the only extra cost. There’s survey fees, legal fees, removal costs, and the inevitable repairs that crop up in the first month. A lot of first-time buyers stretch themselves so thin on the deposit that they have nothing left for the move itself. Budget for at least 3–5% of the purchase price on top of your deposit.

Waiting for the “perfect” time

Only 17% of people think now is a good time to buy. That means 83% are waiting. But waiting has a cost too — rents rise, prices rise, and the deposit you’ve saved buys less over time. The BSA’s research shows that since the financial crisis, 2.2 million would-be first-time buyers who might reasonably have expected to own have been locked out. Some of that is down to market conditions. Some of it is down to waiting for conditions that never came.

Not understanding the process complexity

Frustration with the homebuying process is at its highest ever level, with 14% now viewing it as a major barrier, up from 10% in July 2025. That might sound small, but it’s a rapid increase. The government is consulting on reforms, but in the meantime, the system remains slow, opaque, and prone to fall-throughs. If you’re buying, use a solicitor who specialises in conveyancing and ask upfront about their typical timeline. Don’t assume four weeks — assume four months.

For a deeper look at how renting has become the default for so many, the article on whether renting forever is the UK’s new normal covers the generational shift in detail.

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How to improve your chances of buying a home in 2025 and beyond

Writing about topics like this takes real time and research. If you buy something through an Amazon link on this page, I may earn a small commission — at no extra cost to you. It’s one of the things that makes it possible to keep BritWealth free to read. I only link to products that are genuinely relevant to the article.

If you’re serious about buying, there are practical steps you can take right now. None of them guarantee success, but they improve your odds — and in this market, that’s what matters.

Get your finances in order before you start looking

Lenders look at your credit history, your debt-to-income ratio, and your spending patterns. A financial advisor can help you structure your savings and borrowing strategy to maximise what you can borrow. But you can also do a lot yourself: check your credit report for errors, pay down credit card debt, and avoid taking on new loans in the six months before you apply. Lenders also look at your regular outgoings — if you spend £200 a month on takeaways, that counts against your affordability calculation.

Consider shared ownership or other alternative routes

Shared ownership lets you buy a share of a property and pay rent on the rest. It’s not perfect — you still have to pay service charges, and selling can be complicated — but it gets you on the ladder with a smaller deposit. The BSA’s research shows that 47% of first-time buyers say not being able to borrow enough is a major barrier, and shared ownership directly addresses that by reducing the amount you need to borrow. Look at your local housing association’s offerings, and check whether you’re eligible for Help to Buy or Lifetime ISA bonuses.

Look beyond your preferred area

The English Housing Survey shows that mean mortgage payments in London are £375 a week, compared to £220 elsewhere. That’s a difference of over £8,000 a year. If you’re flexible on location, you can buy a home sooner — and with a much lower monthly cost. Commuting adds time and transport costs, but for many people, it’s the difference between owning and renting forever. Use a commute-time calculator to see what’s realistic.

Prepare for the process to take longer than you expect

The government is consulting on reforms to the home buying process, but nothing has changed yet. 14% of buyers now say the complexity of the process is a major barrier, up from 10% in just a few months. That means more chains are falling through, more surveys are revealing problems, and more buyers are pulling out at the last minute. Build a buffer into your timeline. If you think you’ll complete in three months, plan for six. And don’t give notice on your rental until you’ve exchanged contracts.

• 1
  Check your credit report

  Use a free service like ClearScore or Experian to check for errors. Fix any issues before you apply for a mortgage.

• 2
  Get a mortgage agreement in principle

  This tells you exactly how much a lender will offer. It’s free and doesn’t affect your credit score if done through a broker.

• 3
  Budget for all costs, not just the deposit

  Include stamp duty, legal fees, surveys, removals, and a contingency fund for repairs. Aim for 3–5% of the purchase price on top of your deposit.

• 4
  Start viewing properties within your real budget

  Don’t look at homes you can’t afford. It’s demoralising and wastes time. Stick to what your agreement in principle says.

For more on how property values and investment strategies are shifting, the piece on bricks vs mortar investment strategies looks at whether owning property still makes financial sense compared to other options.

Frequently asked questions about buying a home in the UK

Sources and Further Reading

If this was useful, you might also want to read Is urban flight over? Why UK city centres are making a comeback.

The Airbnb effect: is short-term letting damaging UK communities? — Explores how short-term lets affect housing availability and prices in popular areas.

Sustainable homes in the UK: are they worth the investment? — Looks at whether energy-efficient homes hold their value and save you money long-term.

English Housing Survey 2024 to 2025: headline findings. Ministry of Housing, Communities and Local Government, 2025.

The dream of homeownership is slipping away for a generation. Building Societies Association, October 2025.