Despite soaring house prices and higher mortgage rates, younger generations remain determined to step onto the property ladder.
Fresh research from fintech platform Revolut reveals that Millennials and Gen Z still see homeownership as the most powerful path to building wealth, even in today’s challenging housing market.
Younger Generations See Property as a Path to Wealth
According to the study, over 35% of Gen Z and 40% of Millennials believe that owning a home is the most effective way to grow their financial security.
This determination persists despite average house prices in the UK reaching £271,079 in August 2025 (Nationwide), and despite the steep rise in mortgage costs.
First-time buyers are now spending 44% of their salaries on mortgage repayments—a sharp increase compared with the long-term average of 35%.
Yana Shkrebenkova, UK CEO of Revolut Wealth and Trading, explains:
“Rising house prices haven’t stopped younger people dreaming of owning a home and seeing it as a way to secure their future.”
The Generational Divide in Property Investment
Interestingly, older generations take a more balanced approach. While UK homeowners over 60 collectively hold nearly £3 trillion in property wealth, with 98% mortgage-free, many no longer view property as the sole route to financial security.
As Shkrebenkova points out:
“Older age groups, despite higher levels of homeownership, are less likely to see property as their primary long-term financial strategy.”
This signals a shift: whereas Millennials and Gen Z prioritise getting on the property ladder, older generations are more focused on diversified portfolios, spreading wealth across property, investments, and other assets.
Early Investment Habits Are Key
While many young adults remain fixated on homeownership, some are beginning to mirror older investors by diversifying their strategies.
Millennials in particular have demonstrated resilience, proving to be 20% more likely to hold investments during market downturns compared to other generations. This highlights a growing maturity in their approach to wealth building.
Shkrebenkova also stresses the importance of broadening financial horizons:
“Investing in the stock market, alongside other opportunities, can begin at any stage—regardless of financial situation or living arrangements.”
What This Means for the UK Property Market
The findings underline that property remains a powerful aspiration for younger buyers, even as affordability challenges intensify. For developers, investors, and landlords, this demonstrates continued long-term demand for housing—especially in key urban markets such as London.
At Piccadilly Estates, we understand the unique challenges that each generation faces in today’s housing market. Whether you are a first-time buyer, an experienced investor, or looking to diversify your property portfolio, our team is here to help you make confident, informed decisions.
