Affordability crisis deepens for renters – Barclays

Renters are still facing affordability concerns, as the cost of deposits and high property prices continue to block many from achieving home ownership, according to new research.

Data from Barclays’ Property Insight report shows that price is the top priority for Gen Z when looking for a home (24%), while location is the aspect most often compromised to afford a property (21%).

The report comes as the Office for National Statistics (ONS) revealed that UK house prices rose by 3.8% in the 12 months to April 2026, reaching an average of £270,000.

Price is the top priority

According to the data, although the average deposit fell by 16.4% year-on-year in May, it remains the top barrier to homeownership reported by renters.

The cost of a deposit needed to buy a home (37%) and high property prices (36%) are cited as the biggest obstacles to homeownership for renters, compared with just 16% who point to monthly mortgage payments.

Among those who say price is their top priority, nearly one in five Gen Z (21%) would be willing to move more than 25 miles away, with location being the most common trade-off in favour of affordability.

Meanwhile, one in seven Gen Z adults (14%) report having changed their budget or lowered their housing expectations due to ongoing affordability pressures.

First-time buyers remain constrained by affordability

Jatin Patel, head of mortgages, savings and insurance at Barclays, said first-time buyers are struggling with affordability.

He 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.”

Delays and complications in house purchases

The research also reveals delays and complications in house purchases have increased.

Nine in 10 (88%) buyers and sellers from this year report experiencing delays, while 29% have had a property purchase fall through.

One in three consumers (30%) say they are now more likely to delay buying or selling because of economic volatility, while a third (32%) are increasing their savings or cutting back on spending in case of future impacts on their costs.