The rising importance of Gen Z in the intermediary mortgage market – Cassidy

They have greater access to information and a stronger appetite for shorter, more accessible, and easily digestible insights into personal finance. They increasingly turn to social media and finfluencers for guidance, prioritising real-time, engaging content over traditional, longer financial discussions.

For lenders and mortgage intermediaries, it’s vital to be aware of these attitude shifts in order to capture, and maintain, Gen Z’s attention in a rapidly evolving market. 

Barclays’ latest Property Insights report highlights the rising significance of Gen Z in the current housing and mortgage markets. Rent and mortgage spending increased by 7.7% year-on-year in February, as more homeowners transitioned from lower fixed rate mortgages onto higher rates.

Despite this increase and further economic challenges, confidence in the UK housing market has grown to 30%, its highest level since October 2024, up from 24% in January. 

Sponsored

Shawbrook is the specialist mortgage sector’s ‘best kept secret’ – Sard

Sponsored by Shawbrook Bank

FTB determination in a tricky housing market 

First-time buyers, a key present and future segment of the Gen Z demographic, are driving much of this growth.

Barclays’ mortgage data shows that average monthly completions have surged by 26% following the Autumn Budget, with first-time buyer purchases increasing by 59%. This group now represents 36 % of all completions, up from 29% previously.

However, changes to stamp duty bands have created additional obstacles, with completions in the price bracket above the current stamp duty threshold (£425,000) declining from 21% in October 2024 to 16% in February 2025. 

Rentflation remains a pressing issue, with 36% of Gen Z renters reporting a rent increase in the last six months, higher than any other age group. The average UK renter is now spending an additional £105.90 per month, but for Gen Z, this figure is even steeper at £134.70 per month, equivalent to £1,616 annually. Consequently, one in five renters cite rising rental costs as a major barrier to homeownership. 

Nonetheless, Gen Z remains determined to get onto the property ladder. Almost six in 10 (57%) Gen Z renters are currently saving for a deposit, while 40% believe they will own a home within the next five years, compared to just 23% across all age groups. However, nearly two-thirds (64%) acknowledge that they would find it impossible to buy a home without an inheritance or financial support from family. 

Given Gen Z’s financial challenges and digital-first mindset, it’s important for mortgage intermediaries to constantly evaluate their engagement strategies, as more traditional approaches may not resonate as effectively with this audience.

An audience that tends to favour: 

• Bite-sized, visual content: Gen Z prefers quick, digestible insights, making social media platforms such as Instagram, TikTok, and YouTube key channels to educate and engage. 

• Authentic and transparent advice: This generation values authenticity and transparency. Finfluencers who break down complex mortgage concepts into clear, actionable advice are particularly effective at capturing Gen Z’s attention. 

• Tech-driven solutions: Gen Z expects seamless digital experiences, often through AI-powered chatbots, online calculators, and apps. 

• Tailored mortgage products: Given their financial constraints, Gen Z benefits from innovative mortgage solutions. Offerings such as Family Springboard and Mortgage Boost are products that can help first-time buyers access the market without the need for a large deposit. 

The UK’s housing market is still navigating post-pandemic adjustments, with fluctuations in interest rates and stamp duty changes shaping buyer behaviour. Barclays’ proprietary data indicates that the average age of a first-time buyer has risen to nearly 34 in 2024, up from 32 just two years earlier.

Yet, it also suggests a more optimistic outlook than previously anticipated.

As Gen Z continues to mature financially and become a dominant force in the housing market, lenders and intermediaries must prioritise digital engagement, tailored products, and innovative strategies to meet their ever-evolving needs.

By doing so, together we can help bridge the gap between aspiration and homeownership for the next generation of homebuyers.