Generation Rent 2035: Will Today’s Under-35s Ever Own a Home in the UK?
Rents are eating more than a third of tenants’ incomes in England, and over 40% in London. House prices are rising again despite tax changes and political noise. At the same time, a major new Renters’ Rights Act has just become law, promising the biggest shake-up of England’s private rented sector in a generation, including an end to “no-fault” evictions from 2026.
This is the landscape facing today’s under-35s. Many have never known cheap housing or secure tenancies. They are told that “Generation Rent” might finally get a fairer deal. They are also told that home ownership is now more “affordable” on paper than at any point in the last decade.
The central question is simple and brutal: by 2035, will a typical young adult in Britain still be renting, or will they have a realistic path onto the ladder?
This article looks at how the crisis emerged, what has changed in the last few years, and how new laws, income trends, and market shifts could shape the prospects of today’s under-35s between now and 2035.
Key Points
Home ownership among 25- to 34-year-olds has recovered slightly from its mid-2010s low, but it remains far below the 2000 peak.
Tenants in England now spend around 36% of gross income on rent on average, and over 40% in London, well above the 30% affordability benchmark.
First-time buyers are older, richer and more likely to buy as couples, with average deposits around £60,000 and typical homes costing over £300,000.
The Renters’ Rights Act 2025 will abolish section 21 “no-fault” evictions and introduce open-ended tenancies from 2026, improving security but not directly cutting costs.
Government plans to build 1.5 million homes and expand affordable housing could help, but current output and forecasts suggest the supply gap will remain large.
By 2035, more under-35s are likely to own than today, but ownership will be concentrated among higher-income households and those with family support. Others risk renting well into middle age.
Background
For most of the late 20th century, home ownership was a core part of Britain’s social contract. Right to Buy, easier credit and rising wages pushed ownership rates up, particularly among the middle classes. Youth home ownership peaked around the turn of the millennium.
Then the model cracked. After the global financial crisis of 2008, lending rules tightened while prices, especially in London and the South, continued to climb. Deposit requirements jumped. Incomes stagnated. For young adults, ownership effectively halved over two decades.
As ownership fell, more young people moved into the private rented sector. The growth of buy-to-let, low interest rates and tax advantages encouraged landlords to expand. By the early 2020s, almost half of under-35s were renting from private landlords, while many families lived in private rented homes.
Rents rose faster than wages in many high-demand cities. By 2024, tenants in England were spending about 36% of their gross income on rent on average, with London renters spending over 41%. In some regional hotspots such as Bristol and Brighton, the rent-to-income ratio is even higher.
The result was a generational squeeze. Many young adults delayed moving out, forming families, or having children. One in five 25- to 34-year-olds now live with their parents, the highest level in two decades. Among those still at home, analysis suggests that the vast majority cannot afford a typical first home on their own income.
Yet the picture is not entirely one-way decline. New research shows that home ownership among young adults has ticked up since a mid-2010s trough. Younger millennials are now slightly more likely to own by 25 than older millennials were at the same age, though the gains are concentrated among middle- and higher-income groups.
Today’s under-35s sit at the centre of these cross-currents: better-off young households recovering some ground, while those without wealth or stable earnings fall further behind.
Analysis
Political and Policy Landscape
Housing has become a central test of the current government’s performance. Ministers have pledged to build 1.5 million homes in England during this Parliament and to make housing more affordable, backed by a large Social and Affordable Homes Programme.
Alongside supply pledges, the Renters’ Rights Act 2025 marks a structural change to England’s rental rules. The law, which received Royal Assent in October 2025, will be rolled out in three phases. From May 1, 2026, section 21 “no-fault” evictions will be abolished and most tenancies will become open-ended Assured Periodic Tenancies. A national database of private rented homes and stronger enforcement powers for councils will follow later in the decade.
These changes should improve security for renters and reduce the churn of forced moves, which is particularly damaging for families and lower-income tenants. However, they do not directly reduce rents or deposits. Some landlord groups warn that tougher rules and higher taxes on additional properties will push more small landlords to sell, potentially tightening supply and putting further upward pressure on rents in the short term.
Recent budgets have also adjusted the tax environment. A new council tax surcharge on high-value homes and a higher stamp duty surcharge on additional properties are intended to tilt incentives away from speculative ownership. For most under-35s, these measures matter mainly if they shift investment behaviour and free up more stock in mainstream price bands.
The political dilemma is clear. Governments are under pressure from renters to regulate more heavily, from aspiring buyers to raise supply, and from existing homeowners to protect property values. How far ministers are willing to go on planning reform, social housebuilding and landlord taxation will play a major role in whether Generation Rent remains a permanent bloc or a transitional phase.
Economic and Market Pressures
On one level, the market is sending mixed signals. Some headline statistics suggest that buying has become more “affordable” for first-time buyers than at any point in the past decade. Stronger wage growth and easing mortgage rates have slightly improved standard affordability metrics.
At the same time, the hurdle to entry remains huge. The average first-time buyer is now around 33–34 years old, and the typical first home costs roughly £311,000. The average deposit is around £61,000, or about 20% of the purchase price.
Rents are the second blade of the scissors. In England, tenants spend around 36% of gross income on rent, rising to over 40% in London and even higher in some regional hotspots. The higher the rent, the harder it is to save. While mortgage payments for those who manage to buy can be lower than equivalent rents, getting through the deposit bottleneck is the real challenge.
Fiscal forecasts suggest no major collapse in house prices. Mortgage rates are easing and lenders expect further cuts, but falling borrowing costs can also push prices back up if supply remains tight. Longer-term mortgages of 35–40 years are becoming more common, spreading costs but locking borrowers into debt deep into middle age.
Behind these averages sits a widening wealth divide. More first-time buyers rely on family support. A majority of new buyers now receive financial help from parents or relatives, reinforcing the role of inherited wealth in shaping who can buy and when. For those without access to the “Bank of Mum and Dad”, the numbers look much harsher.
Social and Cultural Fallout
The housing squeeze is reshaping how young adults live.
Co-residence with parents has become normalised for people well into their late twenties and early thirties. One in five 25- to 34-year-olds now live with family, saving hundreds of pounds a month on rent but often at the cost of independence and space.
Those who do rent privately face more insecurity and lower housing quality than homeowners or social renters. Private tenants are more likely to move frequently, live in overcrowded or poor-quality homes and experience higher levels of housing-related stress. That has knock-on effects on mental health, family stability and career choices.
At the same time, a growing professional “build-to-rent” sector offers newer flats with amenities but at premium prices. Most tenants in these schemes are under 35, and their incomes and household types look similar to the wider private rented sector. For many, this model provides comfortable, flexible living but no route to ownership.
Over time, these patterns risk hardening into a cultural shift. In some European countries, long-term renting is normal and socially accepted. In Britain, however, housing wealth is still central to retirement security and intergenerational transfers. A persistent split between property-owning under-35s and long-term renters would echo through future decades.
Prospects to 2035
Looking ahead, several forces will collide by the mid-2030s:
Policy reforms will make renting more secure and somewhat more regulated, but they may also reduce the number of small landlords if not balanced by new supply.
Housebuilding targets are ambitious but historically difficult to meet, and even the planned expansion of social and affordable housing will only chip away at the backlog in a “best-case” scenario.
Income growth is forecast to be weak by historic standards, limiting how much earnings alone can restore affordability.
Demographic change and inheritance will transfer more housing wealth from older generations, but unevenly, reinforcing existing regional and class divides.
Most analysts expect some further recovery in young adults’ ownership rates from the mid-2010s low, but not a return to the broad-based ownership of the late 20th century.
By 2035, a typical under-35 with a stable, above-average income, a partner who also works, and at least modest family support is likely to be on the ladder, especially outside the most expensive cities. For a single renter on a median income in a high-demand urban area, the odds of ownership by that date remain much lower.
Why This Matters
The shape of Generation Rent has consequences far beyond the property pages.
Housing wealth is one of the main drivers of lifetime financial security in the UK. Homeowners build equity as they pay down their mortgage and benefit from price growth. Renters, by contrast, face ongoing housing costs into retirement and are more exposed to shocks in the labour market or benefit system.
If a large share of today’s under-35s are still renting by 2035, the UK risks a future in which:
Pension systems and social care have to cope with more older renters paying market-level housing costs.
Wealth inequality widens between those who gained access to the property ladder early and those who never did.
Political tensions grow between property-owning older voters and younger renters, particularly over planning, property tax and social housing investment.
Upcoming milestones will shape the path. These include the phased implementation of the Renters’ Rights Act from 2026, the pace of delivery under the Social and Affordable Homes Programme, and future budgets that may revisit property and inheritance taxes as fiscal pressures mount.
Real-World Impact
Consider three simplified examples that illustrate what Generation Rent 2035 might look like.
In one northern city, a couple in their early thirties, both in stable mid-income jobs, currently rent a small flat. Their landlord raises the rent each year, but they manage to save consistently by cutting other spending and receive a modest gift from parents. With mortgage rates easing and house prices in their region still within reach, they buy a modest house in 2029 using a 10% deposit and a 35-year mortgage. For them, the system is stretched but still workable.
In a high-demand regional hub such as Bristol or Brighton, a single 29-year-old professional spends more than 40% of take-home pay on rent. Occasional rent bidding and frequent moves make it hard to save. Even with a steady career, the deposit gap keeps widening. Without an inheritance or a partner with higher earnings, this person could still be renting a decade from now, even if wages rise modestly and prices level off.
On the edge of a commuter town, a 27-year-old lives with parents in a paid-off family home. They contribute to household bills but pay no formal rent and can save hundreds of pounds a month. Over several years they build up a deposit, helped by a Lifetime ISA bonus and small gifts from relatives. When mortgage rates fall and a new-build development opens nearby, they secure a flat in their early thirties. Their route to ownership depends less on the market and more on family assets and geography.
None of these examples are extreme. They show how similar earnings can lead to very different outcomes depending on housing costs, family wealth and location.
Conclusion
Generation Rent is no longer a slogan. It is a description of how millions of young adults live today. Some indicators have improved: home ownership rates among young adults have edged up from their mid-2010s low, mortgage rates are down from recent peaks, and new laws will give renters stronger rights and more security.
Yet the structural barriers remain daunting. High rents swallow incomes. Deposits are large and rising. Housebuilding still falls short of stated ambitions. Income growth is weak by historic standards, and the benefits of the recovery have flowed unevenly across the income distribution.
By 2035, many of today’s under-35s will own homes, but ownership is likely to be more concentrated and conditional than in the past. Those with stable careers, partners and parental support will have the best odds. Those without these advantages may face decades of renting, even if headline “affordability” statistics suggest that conditions have improved.
The signals to watch over the next few years are clear: whether housing supply genuinely accelerates; whether rents fall back towards the 30% income benchmark; how far income growth outpaces house prices; and whether political appetite emerges for deeper reforms to land, tax and planning.
If these indicators move in the right direction, Generation Rent could still become Generation Owner by mid-century. If they do not, the UK may be on course for a more permanent tenure divide, with profound consequences for wealth, politics and social cohesion.
