This is according to Barclays’ latest Property Insights report which also reveals that a third of Gen Z (34%) hope to purchase a new or first home in 2026, with many already having significant savings set aside towards a deposit.

Confidence in the housing market among 18-34 year olds improved from 33% in January 2025 to 40% in December, but affordability remains a significant barrier.

Despite this, almost six in 10 (59%) Gen Z buyers who are planning to purchase in 2026 have already saved what they consider a significant amount towards a deposit. On average, Gen Z savers report having accrued £19,442, excluding financial assistance or inheritance, compared to £25,760 among all hopeful buyers. Gen Z adults expect to add a further £8,998 to their deposit pot throughout 2026, versus a national average of £11,023.

While the Bank of Mum and Dad remains influential – supporting a third (34%) of recent Gen Z buyers – perceptions around the necessity of support from family or friends appear to be easing, with four in 10 (43%) Gen Z saying inheritance or financial assistance is now essential, compared to 63% at the start of 2025.

Across all age groups, perceptions around the barriers to homeownership eased over the course of 2025, driven by a rise in transactions involving more affordable properties and smaller deposits. While property prices (41%) and the cost of a deposit (39%) remained the greatest obstacles, these concerns were notably lower than in January 2025, when over half (51%) pointed to house prices and 44% to deposit costs

Barclays Mortgage Book data also shows that deposits below £20,000 accounted for more than a fifth (22%) of first-time buyer purchases in December 2025, up from just 13% a year earlier.

Meanwhile, the average first-time buyer deposit fell by 14 % year-on-year, alongside increased appetite for higher loan-to-value borrowing.

According to Barclays, this shift to smaller deposits and higher LTVs suggests that first-time buyers are finding it easier to get on the property ladder, as lenders continue to introduce innovative mortgage products to help more people access the market.

Looking ahead through 2026, many homeowners will reach the end of five-year fixed-rate deals secured in 2021 during the lower interest rate environment ahead of the 2022 Mini-Budget.  From January to June 2026, residential mortgages worth £152.5bn – an 25% increase from 2025 – will reach the end of their term.

Barclays research also suggests that just over a fifth (22%) of mortgage holders expect to remortgage in 2026, with nearly two-thirds (64%) of this group anticipating an increase in their monthly repayments.

Commenting on the latest data Barclays, head of mortgages, savings and insurance Jatin Patel said: “Our latest data shows clear signs that confidence in the housing market is beginning to stabilise, despite ongoing affordability pressures. Younger buyers, particularly Gen Z, are highly motivated to get on the property ladder and lenders are helping to meet this demand by providing innovative products that increase how much customers can borrow.”

He added: “Many existing homeowners are preparing for higher borrowing costs in 2026 as they roll off five-year fixed-rate deals, prompting a renewed focus on budgeting, saving and longer-term planning. Whether it’s building an emergency fund, remortgaging, or investing in home improvements and energy efficiency, households will be taking a more considered and proactive approach to managing their housing costs in 2026.”

Barclays head of mortgage intermediaries Roland McCormack said that the focus for the lender this year was to further simplify the mortgage process, using data to be more responsive to brokers; to advance use of AVMs; and to step up support for first time buyers.