A generation of responsible, financially aware young people is being locked out of homeownership, not through recklessness or a lack of effort, but because the system is stacked against them. That is the clear verdict of new research commissioned by NHG Homes, which surveyed 2,000 non-homeowners aged 20–35 across Great Britain. The findings paint a striking picture of a generation trying everything it can: tracking spending, cutting back on unnecessary purchases, and following monthly budgets, yet still watching the dream of owning a home slip further out of reach. With soaring rents consuming a growing share of take-home pay and house prices remaining stubbornly out of reach for first-time buyers, the research reveals the significant financial and emotional toll that being locked out of the property ladder is taking on young people across the UK.
Doing Everything Right, But Still Falling Behind
Despite the stereotype of young people as financially careless, the data tells a very different story. Nearly half (48%) say they actively try to avoid unnecessary spending, 39% track their outgoings, and 32% save regularly. Yet for all this discipline, the numbers are unforgiving. More than a third have less than £50 left at the end of the month. One in five have nothing left at all.
Two thirds (66%) agreed with the statement: “I feel like I am doing the right things financially, but still not getting ahead.” This sentiment grows stronger with age, rising from 62% among 20–24 year olds to 68% among those aged 30–35, suggesting that time and experience only deepen the frustration. In London, the figure is even higher at 71%, a sobering finding given that Londoners actually tend to have slightly more left at month-end (a mean of £273 vs £173 nationally), proof that the capital’s higher costs devour higher wages just as ruthlessly.
An External Crisis, Not a Personal Failing
When asked to identify the main reasons why young people struggle financially, respondents overwhelmingly pointed outward rather than inward. Six in ten (61%) cited the cost of living as the primary culprit, 30% pointed to housing costs, and a further 30% blamed low wages relative to expenses. By contrast, only 15% attributed financial hardship to personal spending habits, decisively rebutting the narrative that young people simply need to stop buying coffee and avocado toast.
The consequences of this sustained financial pressure are far-reaching. Nearly two thirds (62%) say money worries affect their day-to-day life always or often. Financial stress has damaged the mental health of 63% of respondents, disrupted the sleep of 48%, and affected the social lives of 46%. Among those aged 25–29, the mental health impact is highest, with nearly 65% reporting that money worries have taken a toll. This is not a minor inconvenience, it is a crisis quietly unfolding in the lives of millions of young people.
The Door to Homeownership Feels Closed, But It Doesn’t Have To Be
The research lays bare just how remote homeownership has become for this generation. Just 15% of non-homeowners believe buying a home will ever be achievable for them, while 36% say it is currently out of reach and 27% feel it may be possible, but only in the very long term. Most strikingly, among 30–35 year olds, those who have spent the best part of a decade in the rental market, only 13.5% believe homeownership is achievable. Hope diminishes as the years pass.
NHG Homes believes shared ownership offers a genuine and practical route through this impasse. By requiring a smaller deposit than buying outright, shared ownership allows aspiring homeowners to stop paying rising rents or living indefinitely with parents, and to take a meaningful step onto the property ladder with financial stability and a space to call their own.
For example, at NHG Homes’ Heybourne Park development in Colindale, buyers can take their first steps onto the ladder with deposits from £4,350 For Londoners with average savings on £273 per month, just 16 months of saving would be needed to reach this deposit level.
