"Under 30s remain optimistic about homeownership, but the steep decline in expectations for those in their 40s and 50s, combined with high living costs, raises questions about whether expectations match reality"
- Matt Hutchinson - SpareRoom
The rising cost of rent is creating uncertainty for many, with 44% of renters unsure if they will ever buy a home. A survey of 6,524 renters by flatshare site SpareRoom reveals that 14% believe they will never get on the property ladder, while 30% remain unsure.
The rent burden is becoming more severe: 26% of flatshares now spend more than half their take-home pay on rent, and three-quarters spend over 30%. Meanwhile, UK average room rents have risen 29% from £576 per month in Q1 2021 to £744 per month in Q1 2025. The pressure is especially high on under 25s, with 40% spending more than half their income on rent.
When asked why they want to buy, 70% cited the emotional desire of ‘having somewhere to call home’, slightly ahead of financial reasons such as long-term security or paying into an asset rather than rent.
Among those who don’t think they will ever afford to buy, 65% said they cannot save a deposit. A similar number (67%) feel their income is too low to qualify for a mortgage, and 48% said their family can’t help with a deposit. However, 11% simply prefer renting.
Renting long-term without pressure to buy appeals to 34% of renters, down from 55% in 2021. For many, ‘having somewhere to call home’ remains the biggest motivation to purchase (69.7%), followed by ‘long-term financial security’ (68.6%) and ‘paying into something I own rather than to a landlord’ (68%).
Gen Z remains hopeful
Among the 2,920 respondents under 30, mostly Gen Z, 62% expect to buy property eventually, with 38% hoping to do so within five years. However, 40% think it will take five to nine years, and 16% say 10 to 15 years.
To achieve this, 92% plan to use savings, 47% will team up with a partner, 27% expect help from family or friends, 17% will use inheritance, and smaller percentages plan to pool resources with siblings, parents, or friends.
25% of under-30s are considering moving back with their parents to save money, and another 27% say they might in the future. 51% expect to relocate to afford a property, and 86% are cutting spending, particularly on eating out (63%), holidays or weekends away (56%), and clothes (55%).
Homeownership expectations fall sharply with age, dropping to 24% for renters in their 50s.
The rent burden also affects women more than men, partly due to the gender pay gap and the desire to live in safer, often more expensive, areas.
“The post-pandemic rush for rentals pushed rents to record highs, and despite the market cooling, rents haven’t decreased. Affordability was already difficult before the pandemic, but people are now increasingly rent-burdened, facing tough choices about where and how they live to save for a deposit," explained SpareRoom director Matt Hutchinson.
“Under 30s remain optimistic about homeownership, but the steep decline in expectations for those in their 40s and 50s, combined with high living costs, raises questions about whether expectations match reality.
“We’ve seen a sharp rise in over-65s searching for flatshares or housemates, with numbers up elevenfold in 10 years, and over-55s tripling. The decline in homeownership is well documented. The real issue is what happens to those who retire without property assets or savings. This poses a major risk to public finances if not addressed soon. It’s time for long-term policy solutions.”
