Why Gen Z and Millennials Are Still Struggling to Put Down Roots

It’s apparently a fantastic time to be a first-time homebuyer in Britain. A mix of lower interest rates, fatter salaries and slow house-price growth has improved affordability for those looking to get on the property ladder. Data from Lloyds Banking Group shows the price of a typical first home is just 5.9 times the average wannabe buyer’s salary, down from 6.2 at the end of 2024. The last time the ratio was that low was 2015.

Could this be the beginning of the end for millennial and Gen Z housing woes? Don’t count on it. Shortly before his election last year, Prime Minister Keir Starmer promised to “turn the dream of owning a home into a reality” for young people. But, in the short term at least, potential buyers are about to be squeezed even harder by his Labour government’s latest budget.