Millennials are finding it increasingly difficult to purchase a home compared to previous generations, though recent data suggests a potential shift. House price growth has moderated relative to wage increases in recent years, and some lenders are now accepting smaller deposits. Furthermore, mortgage providers are becoming more amenable to offering larger loans with extended repayment periods, and current mortgage payments are trending back towards historical averages in relation to earnings.

Despite these emerging positive signs, a fundamental obstacle remains: a lack of available housing. To make homeownership as attainable for the current generation as it was for their predecessors, a significant increase in the housing supply is necessary.

In response to the ongoing challenges, the UK government has initiated reforms aimed at streamlining the planning process, which has often been characterized as chaotic and inefficient. These reforms also include provisions to permit more housing development on green belt land, a measure that has generated public debate.

However, to significantly accelerate construction, there is a recognized need to create a more robust environment that encourages builders to invest with greater confidence. The impact of these governmental and industry efforts is expected to take several years to materialize fully.

Historically, home ownership rates for those in their 20s have declined. For instance, data indicates that only 0.3% of individuals born between 1991-1995 owned a home by age 20, compared to 2% of those born between 1961-1965. By age 28, this gap widens, with 27% of the younger cohort owning property versus 47% of the older cohort.

Construction costs have also outpaced general consumer price inflation. As of recent data, construction prices have increased by over 50% since 2015, while consumer prices have risen by 35% during the same period.

These factors contribute to the difficulty for young people to enter the housing market. For example, young private tenants typically allocate a third of their income to rent, whereas those living with family often spend as little as 4%.