Conveyancing and affordability pressures reshape buyer behaviour across all age groups
Housing market confidence rose to 26% in May from 23% in April, according to Barclays Property Insights, though affordability pressures continue to weigh on prospective buyers — particularly renters.
Among renters, the cost of a deposit (37%) and high property prices (36%) were identified as the principal barriers to homeownership.
Only 16% flagged monthly mortgage payments as a concern.
Gen Z trades location for affordability
For buyers aged 18 to 29, price is the most important factor when purchasing a home (24%), ranking ahead of location (19%) and neighbourhood quality or safety (17%). A quarter of Gen Z renters say they cannot afford to buy in their preferred area.
Of those who rank price as their top priority, 21% would relocate more than 25 miles to achieve homeownership. By contrast, Baby Boomers (aged 62 to 80) are more likely to compromise on a property's condition (22% versus 11% for Gen Z) but less willing to give up outdoor space (8% versus 18%).
One in seven Gen Z adults (14%) report having reduced their budget or lowered their housing expectations because of affordability pressures. Despite this, buying intent is rising: 16% of Gen Z renters say they are actively searching for a property to purchase, up nine percentage points month-on-month.
Deposits fall but regional variation persists
Average deposit values fell 16.4% year-on-year to £57,209 across all age groups, with declines recorded in most regions — attributed to factors including stagnating house prices and a reduction in high-value property sales. London saw one of the sharpest drops, down 27.2% to £136,057, with the South East and East Anglia also recording significant decreases.
| Average deposit values by region | |||
|---|---|---|---|
| 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% |
| Source: Barclays | |||
Completion timelines lengthen as remortgage activity rises
Transaction delays have become more widespread. Some 88% of buyers and sellers this year report having experienced delays, and 29% say a purchase has fallen through. Barclays Mortgage data shows the average time from final mortgage offer to completion has increased 21.7% year-on-year. Conveyancing issues (21%), estate agent delays (19%) and difficulty finding suitable properties (18%) were the most commonly cited causes.
Economic uncertainty is also prompting some households to pause. Thirty percent of consumers say they are now more likely to delay a purchase or sale due to economic volatility, while 32% are increasing savings or cutting spending as a precaution.
At the same time, existing homeowners are taking a more proactive stance on remortgaging. More than two-fifths (42%) of mortgage holders surveyed say they are more likely to lock in a rate early. Remortgage activity accounted for 40.6% of Barclays Mortgage completions in May, up from 30.7% a year earlier.
"Adaptability has become the hallmark of the modern buyer," said Jatin Patel (pictured right), head of mortgages, savings and insurance at Barclays. "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."
For Julien Lafargue (pictured right), chief market strategist at Barclays, 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," he said. 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."
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