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A recent survey on behalf of Zoopla reveals a significant shift in financial priorities among UK renters in relationships, with nearly half prioritising saving for a home over tying the knot. This trend is especially pronounced among younger generations, highlighting the growing challenges and aspirations in the current housing market.
According to the survey, 48 per cent of UK renters in a relationship are focusing on saving for a home rather than a wedding, rising to 59 per cent among Gen Z respondents. In stark contrast, only 8 per cent prioritise saving for a wedding. This shift reflects broader societal changes, with just 57 per cent of Gen Z expected to marry compared to 72 per cent of Gen X and 87 per cent of baby boomers.
The financial burden of homeownership is causing many to reconsider traditional life milestones. One in five respondents admitted they would postpone marriage to afford a home purchase, while 24 per cent have had to choose between saving for a wedding or a home. Additionally, 37 per cent are contemplating less expensive weddings to redirect funds towards property.
Nearly half (49 per cent) of couples report that financial pressures related to buying a home are causing tension and disagreements in their relationships.
Affordability remains a major hurdle, particularly in southern England, where homes in 80 per cent of towns are valued at more than four times the average annual income. Only 34 per cent of respondents in southern regions believe homeownership is achievable within five years, compared to 43 per cent in northern England.
The survey highlights regional disparities in the perceived difficulty of prioritising homeownership due to cost:
| Region/Country | Percentage Finding It Harder to Prioritise Buying a Home |
|---|---|
| Northern Ireland | 50% |
| Yorkshire & Humber | 62% |
| North East | 64% |
| Wales | 70% |
| South East | 71% |
| East of England | 72% |
| East Midlands | 73% |
| Scotland | 74% |
| North West | 74% |
| South West | 75% |
| West Midlands | 77% |
| London | 82% |
London and the West Midlands stand out as the regions where the cost of buying a home most significantly impacts the ability to prioritise homeownership. Only 9 per cent of millennials feel they can realistically prioritise buying a home in their region.
The average first-time buyer (FTB) home price in the UK is £259,700, requiring an average deposit of £56,700. However, survey respondents underestimate this figure, expecting to save just £27,600 on average.
This disconnect is particularly stark in London, where the average deposit is £138,800, but buyers expect to save only £39,800. Northern Ireland is the only region where perceived deposits exceed actual requirements.
| Region/Country | Average Deposit Required | Perceived Deposit | Difference |
|---|---|---|---|
| Scotland | £34,800 | £29,000 | -£5,800 |
| Northern Ireland | £39,000 | £42,000 | +£3,000 |
| North East | £26,500 | £23,200 | -£3,300 |
| North West | £36,700 | £24,400 | -£12,300 |
| Yorkshire & Humber | £35,000 | £27,900 | -£7,100 |
| East Midlands | £38,800 | £25,400 | -£13,400 |
| West Midlands | £41,500 | £25,600 | -£15,900 |
| Wales | £34,600 | £25,700 | -£8,900 |
| East of England | £60,800 | £27,400 | -£33,400 |
| London | £138,800 | £39,800 | -£99,000 |
| South East | £68,400 | £22,800 | -£45,600 |
| South West | £54,600 | £30,700 | -£23,900 |
The survey also found that 25 per cent of couples expect financial support from parents to help with their first property purchase, underscoring the importance of family assistance in overcoming affordability barriers.
Daniel Copley, Consumer Expert at Zoopla, commented:
"Homeownership clearly plays an important role in the aspirations of UK adults, with many prioritising it over getting married. However, achieving this ambition is challenging due to the considerable affordability gap, with our data highlighting the significant disconnect between what first-time buyers believe they need to save for a deposit and the actual amount required.
This underscores that affordability is a central pillar in people's home-buying decision-making process. Aspiring homeowners should engage with a qualified mortgage broker early on. They can provide essential guidance on deposit requirements, affordability thresholds and available financing options, ensuring buyers are well-informed as they embark on their property journey."
Zoopla offers a range of affordability tools, including mortgage calculators, to help prospective buyers understand what they can afford and plan their next move effectively.
For landlords and letting agents operating in England and Wales, these findings highlight the ongoing demand for rental properties, especially among younger adults who prioritise homeownership but face significant financial barriers. The trend of postponing marriage and other life events to save for a home suggests that rental demand may remain strong for the foreseeable future.
Understanding the financial pressures on tenants can help landlords and agents tailor their services, offer flexible tenancy options, and provide support that aligns with tenants’ long-term goals. Additionally, awareness of regional affordability challenges can inform investment decisions and property management strategies.