The Intermediary – March 2026 - Flipbook - Page 10
RESIDENTIAL
Opinion
Growing intent
still needs
cross the housing and
mortgage market,
there is a clear
shi in tone. Many
first-time buyers
(FTBs) are no longer
siing on the fence in the wake of
Budget uncertainty, renters are
asking more about what is possible
from their homes, and home movers
are reassessing previously parked
plans. In short, the appetite to act
is returning.
A
A third (34%) of Gen Z adults hope to
purchase a new or first home in 2026
The latest Barclays Property Insights
data reflects that change in mood.
Tentative optimism seen at the end of
2025 has continued into early 2026,
particularly among FTBs.
At the same time, the research
highlights the practical barriers that
still risk slowing transactions down.
Barriers that can create real scope
for the intermediary market to add
real value.
Gen Z adults are more than
twice as likely as the national
average to want to buy, at 34%
compared to 16%
Confidence edges up
Delving into the data, it is encouraging
to see that in January, 15% of renters
said they believe they could buy within
the next 12 months, up from 12% in
December, and the proportion who
say they could not purchase without
financial help from family has fallen
from 59% to 52%.
Higher loan-to-value (LTV) options
and wider product choice are clearly
supporting that shi, but deposits
remain significant. The average UK
8
The Intermediary | March 2026
deposit currently stands at £59,057,
rising slightly to £62,272 for firsttime buyers, and regional differences
are stark.
In the North, the average deposit
is £36,161, while in Greater London
it reaches £152,503, more than
Confidence in the housing
market among 18 to 34-year-olds
rose from 33% in January 2025
to 40% in December
ROLAND MCCORMACK
is MD of intermediaries
at Barclays
four times higher. In the capital,
31% of renters cite deposit cost as a
major barrier, while 43% highlight
property prices.
This is where advice becomes
critical. National averages rarely
reflect local reality, and understanding
High house prices remain a
challenge for 64% of young buyers
regional pricing, income levels and
product criteria allows advisers to set
realistic expectations and structure
borrowing effectively.
22% of first-time buyers
purchased homes with deposits
under £20,000 in December
– an eight percentage point
increase from the previous year
Cost of broken chains
While demand is improving, the
process of moving home continues to
create strain. Just under a third (32%)
of those who bought or sold in the
past three years were part of a chain.
Of those, 46% experienced delays or a
breakdown linked to chain issues.
Buyers and sellers budgeted an
average of £4,954 for third-party costs
such as surveys and legal fees. Where
chains stalled or collapsed, affected
households spent an additional
£2,127 on average, 43% above their
planned budget.
Chain breakdown is the leading
61% say mortgage rates
have had a bigger impact on
affordability than prices
cause of failed transactions, cited by
22% of those whose deal fell through.
Gazumping affected 13%, while 11%
experienced gazundering. Notably,
15% admit to aempting one of these
tactics themselves, leading to collapse.
The experience is clearly shaping
behaviour. Among those previously
in a chain, 28% say they will delay
moving due to stress.
One in seven would only sell to a
cash or first-time buyer in future, and
a further 13% would consider a newbuild specifically to avoid chains.
This underlines the importance of
early conversations around timelines,
risks and contingency planning.
