Locked Out: The Rising Age of First-Time Home Buyers

Growing up comes at a cost. For many young people, turning 18 once symbolised independence, leaving home for university, starting a career, or stepping onto the property ladder. Today, however, having a place of your own is becoming increasingly unattainable.

The average age of a first-time buyer in the UK has now risen to 34, while young buyers under 25 make up just 6% of the market, compared to almost a quarter in 1990. As house prices soar and the cost of living continues to rise, a generation is being priced out of homeownership and pushed into prolonged financial dependence. For many, adulthood no longer means moving forward, but remaining in childhood bedrooms well into their thirties, watching the dream of independence drift further out of reach.

How does this affect young people?

Many young people feel let down by a system that is supposed to support them, with the prospect of remaining in or moving back into the family home becoming a reality. Owning a home offers a sense of security not only for the present, but also for the future, something renting can often fail to provide. Without that stability, many young people could face longer working lives and continued financial uncertainty.

The BBC highlighted these concerns in March 2026, reporting that first-time buyers are becoming increasingly reliant on family wealth to get onto the property ladder. One in three house deposits are now supported by financial gifts from relatives, while almost a tenth come from inheritance. This raises an important question: what happens to those who do not have access to financial support or generational wealth?

What steps can young people take to get onto the property ladder?

Reports show that a second income is now often essential for young people hoping to step onto the property ladder, but there are still schemes and investment options designed to support this goal.

The government’s First Homes Scheme offers buyers the chance to purchase a property for 30% to 50% below market value, although strict eligibility criteria can make it inaccessible for some. Lifetime ISAs provide another route, allowing savers to receive a 25% government bonus of up to £1,000 each year, which can be used towards a first home, provided the property costs £450,000 or less. For many young people, this has become an effective way to build towards a deposit faster.

Beyond savings schemes, investment solutions are also becoming increasingly important in helping people reach financial goals earlier. Moneybox reported that 47% of Gen Z and 46% of Millennials actively invest, significantly higher than the 17% of Baby Boomers, while HSBC found that 56% of 18 to 24-year-olds are already in the habit of investing. JP Morgan also expects up to 44% of Gen Z investors to increase their investments in 2026, highlighting the growing focus younger generations are placing on long-term financial planning and future security. AJ Bell suggests investments should ideally be held for between five and ten years, a timeframe that could help open the property market to many aspiring buyers.

Cryptocurrency has also seen a surge in popularity among younger generations. According to an OKX-sponsored survey, 40% of Gen Z and 41% of Millennials trust crypto platforms, compared to just 9% of Baby Boomers in the USA. While the success stories surrounding Bitcoin have played a role in this growing confidence, these investment instruments remain highly volatile and carry the risk of losing full capital.

On the other end of the scale, banks offer savings accounts with relatively low interest rates, averaging around 2.11%, but they provide financial security and protection alongside modest, stable growth. These accounts are typically suited to cautious investors who prioritise safety and easy access to their money.

Structured Products sit between these two extremes, aiming to balance risk and reward. In the UK retail space, many plans include European Barriers designed to help reduce investment risk while still offering potentially higher returns than traditional savings accounts. IDAD’s 2026 Autocall Review reported an annualised return of 7.85% over 1.98 years on FTSE linked plans, with 100% positive outcomes, providing evidence that these investment structures can be effective in helping investors grow wealth with greater peace of mind.

Structured Deposits generally offer slightly lower returns than Structured Product Plans, but they come with the added reassurance of 100% capital protection through the FSCS scheme, covering up to £120,000 per counterparty. Together, these options can provide valuable financial support for those trying to climb onto the property ladder.

However, purchasing a property remains a major financial commitment, and there are many factors to consider beyond saving alone. Anyone exploring investment opportunities should seek guidance from qualified professionals, including financial advisers, before making informed financial decisions.