Following a recent industry roundtable hosted by Barratt London and attended by NLA CEO Nick McKeogh, Craig Carson, Regional Managing Director at Barratt London, reflects on the barriers facing first-time buyers in the capital and the actions needed to help more Londoners step onto the housing ladder.


Homeownership in the capital is tougher than ever to achieve for first-time buyers. Large deposits, rising rents and the high cost of living are all obstacles that are accentuated in London. But that hasn’t diminished the desire of young adults to find a home. We’ve seen this reflected in research we have commissioned at Barratt London, as part of our Step on the Ladder campaign that sets out to educate first-time buyers about the home buying process. 40% of Gen Z and Millennials say that not owning a home is holding them back in life – a clear signal that aspirations to get on the ladder remain strong. 

Latent demand in the first-time buyer market exists, with structural – not motivational – barriers making the system harder to navigate. There’s a need to bridge the affordability gap to avoid losing a generation of homeowners, with one in ten of those aged under 44 saying they’ve given up on homeownership altogether. For a World Class city that prides itself on opportunity and upward mobility, that’s a problem. 

To help solve this issue, Barratt London convened leading industry figures from the public and private sector, including homebuilders, mortgage lenders and the Greater London Authority, for a roundtable discussion to discuss how best to tackle the capital’s first-time buyer shortfall. 

A key theme of the discussion was how the cost of homeownership is the primary factor holding back Gen Z and Millennials from stepping onto the ladder. In the capital, the average first-time buyer house price climbed 8% in 2024, and average deposits represent 50% of earnings for 13.5 years. Saving for a deposit while renting is not a neutral starting point either, with rents exceeding £2,000 a month for many Londoners. Those rents underline the difficulty of saving for a deposit but also demonstrate that young adults are willing and able to afford significant monthly housing costs. The issue is not capacity to pay; it is the structure of access. 

First-time buyers in London need support in their journey onto the ladder. Our Step on the Ladder research shows that 63% of Gen Z and 71% of Millennials say that financial schemes or incentives would increase their chances of buying in the next five years. 

Housebuilder-led and lender-led initiatives are attempting to plug the gap. Deposit contributions, shared equity models and increased income multiples are all addressing stumbling blocks. But for young homebuyers, this patchwork of well-intentioned schemes can feel overwhelming or confusing with many not being transferable between developers. Without a single, recognisable route into homeownership, too many don’t know where to begin their journey. 

Reintroducing Government-backed incentives for homebuyers, similar to the Help-to-Buy model, would provide support that first-time buyers need in London. The closure of the Help-to-Buy equity loan scheme in 2022 has left a hole, with no comparable direct financial assistance aimed at first-time buyers. 

Building on Help-to-Buy, any successor model could be modernised, built in partnership with homebuilders and better targeted to lend a hand to homebuyers in high-cost regions. By creating a universal brand, Government-led schemes can establish a broadly understood model that helps overcome the affordability gap holding back first-time buyers in the capital and beyond. 

London needs first-time buyers. Supporting this segment of the market is fundamental to securing the delivery that will ensure the city reaches its housing targets. If the capital cannot find viable routes into ownership for a generation, it risks undermining its long-standing promise of opportunity. 

To avoid this scenario, pathways to ownership need to become clearer and more affordable, matching the ambitions of young adults. Homebuilders, mortgage lenders and the Government all have a role to play in enabling Gen Z and Millennials to step onto London’s property ladder. With the right targeted reforms, the sector can restore confidence to reinforce the capital as a place where homeownership is achievable. If we want to foster a growing and inclusive city, first-time buyers must remain central to its housing strategy.