Generation Stuck: Majority of 25-44 year old renters thought they would own a home by now

New BSA research finds that a huge proportion of would-be first-time buyers have been unable to fulfil their dream of homeownership in the timeframe they had expected.

Back to PressReleases Event
  • 2.2 million first-time buyers are missing from the housing market
  • 59% of renters aged 25-44 expected to own their home by now
  • 33% of renters aged 25-44 don’t think they will ever own a home
  • 67% of first-time buyers think raising a deposit is the biggest obstacle
  • Only 15% of the population think now is a good time to buy a home

Missing millions

New research from the Building Societies Association (BSA) has found that a huge proportion of would-be first-time buyers have been unable to fulfil their dream of homeownership in the timeframe they had expected. Overall, 43% of renters say they expected to own a home by this point in their life but haven’t managed to do so. For those aged 25-44, the typical age for buying a first home, this increases to 59%.[1]

Whilst some renters remain optimistic, with around a third (31%) of 25-44 year olds thinking they will be able to buy a home within the next five years, a similar number (33%) want to buy their own home but don’t think they will ever be able to achieve this.

The majority of 25-44 year olds want to be homeowners, and the proportion is growing. Five years ago, 15% of renters said they didn’t want to buy their own home. Today this figure has halved to just 8% who have no aspiration to buy their own home.

These findings amplify the conclusions of a recent BSA report – The Missing Millions – which found that a significant number of potential first-time buyers have failed to get on the property ladder since the financial crisis.

Analysis of historic first-time buyer data shows that around 7.2 million individuals or couples would have been expected to buy their first home since 2006. However, only 5 million have achieved homeownership in this time, meaning there are 2.2 million missing first-time buyers from the property market.

Barriers to buying

The latest Property Tracker survey from the BSA, which is published today (25 July 2025), reveals that would-be homebuyers face substantial affordability challenges. 

Raising the necessary deposit is the biggest barrier for those wanting to buy a home, selected by 61% of respondents. This rises even further to 67% for those looking to buy their first home.

Affordability of mortgage payments is also a significant obstacle, with almost two-thirds (60%) citing this. This is similar for first-time buyers at 61%.

43% of people said accessing a large enough mortgage is a hurdle to buying a home in the UK. This rises to almost half (48%) for first time buyers.

And it’s worth noting that a lack of job security has started to nudge up as a barrier to buying a home. More than a quarter (26%) now say this is an issue, compared to less than one in five who said it was an obstacle two years ago (19% in Jun 23). This likely reflects the slow but gradual increase in unemployment and the fall in job vacancies in recent years.

Low confidence in the housing market

Overall, the Property Tracker shows confidence in the housing market remains low. Just 15% of people think now is a good time to buy a property, a decline from one in five (20%) at the start of this year (Jan 2025). Almost double this (36%), do not think it is currently a good time to buy a home.

Despite house prices remaining relatively stable this year, around half (44%) of the population think they will rise over the next 12 months, with only one in ten (12%) thinking they will fall.

The next generation

Looking at renters aged 18-24, who are expected to be the next generation of homeowners, we see hope and hesitation. The majority aspire to home ownership, with 86% saying they would like to get on the property ladder.

Many are optimistic about when they will achieve this, with over a quarter (28%) believing they will become a homeowner in the next five years.

However, one on five (19%), don’t think they will ever be able to achieve this, up from just 12% five years ago.

Commenting on the findings, Paul Broadhead, Head of Mortgage and Housing Policy at the BSA said:

“Our studies into first-time buyers show that they face the toughest conditions in over 70 years. That comes into sharp focus when you see the statistics of the number of people in rented accommodation who have been unable to achieve their dream of homeownership in line with their life plan.

“It’s shocking that 2.2 million first-time buyers who would have reasonably expected to buy their own home have failed to do so since the financial crisis. And the research shows how quickly that number is growing - in 2020 only 12% of 18-24 year olds felt homeownership was out of reach, today that figure has increased to 19%.

“We can’t remove the barriers to homeownership overnight, and there won’t be a solution that enables everyone to get on the property ladder. But there is more that can, and must, be done, including regulatory flexibility and Government focus on long-term solutions, such as increasing housing supply, rather than short-term demand-side boosts. 

“Our first-time buyer reports provide several tangible actions that could be implemented to help fix the broken housing market and in turn support today’s aspiring homebuyers as well as the next generation. Every day that passes without real action raises the number of potential lifetime renters.”

[ENDS]

1 Renters refers to adults who do not own a property and are currently renting from a private landlord, local authority, housing association or living at home rent free.

Press contacts:

pressoffice@bsa.org.uk

Notes to Editors

The Building Societies Association (BSA) represents all 42 UK building societies, as well as 2 mutual – owned banks and 7 credit unions. Building societies and mutual – owned banks have total assets of almost £650 billion. They hold residential mortgages of over £485 billion, 29% of the total outstanding in the UK. They are also helping over 23 million people build their financial resilience, holding over £485 billion of retail savings, accounting for 23% of all cash savings in the UK.

With all their headquarters outside London, building societies employ around 52,300 full and part-time staff.  In addition to digital services they operate approximately 1,300 branches, holding a 30% share of branches across the UK.

Links to BSA First-time buyer reports:
  1. First-time buyers – A roadmap for change - 2024
  2. The missing millions - 2025

Notes on the research
  1. Total sample size in July was 2066 adults. Fieldwork was undertaken between 3rd - 4th July 2025.  The survey was carried out online.
  2. Total sample size in March 2020 was 2053 adults. Fieldwork was undertaken between 28th February - 2nd March 2020.
  3. The screening question for those who never owned a property differed in March 2020 to the question asked in July 2025. The base number of these respondents in March 2020 was 791. The base number of these respondents in July 2025 was 775. All figures have been weighted and are representative of all UK adults, The figures presented from the online surveys have been analysed independently by the BSA.
  4. The figures have been weighted and are representative of all GB adults (aged 18+).
  5. All figures, unless otherwise stated, are from YouGov Plc.