Around two thirds of UK adults surveyed for an annual lending study say they hope to purchase a property, despite ongoing financial pressures and mounting concerns about credit history.
The survey of 4,000 UK adults carried out for The Pepper Money Specialist Lending Study 2025 revealed that young people are the most optimistic about stepping onto the property ladder, with 85% of Gen Z – currently in their late teens and twenties – aspiring to own a home.
According to Pepper Money’s analysis, 1.2 million UK adults expect to be in a financial position to buy a house within the next 12 months, with 6.7 million hoping to purchase property within five years. “However, lower rates of aspiration among older generations suggest many have given up on the dream, perhaps because they consider it completely out of reach,” Pepper Money said.
The majority of Millennials (71%) and 47% of Gen Xers said they hoped to own a home, but only 17% of Boomers and those aged 79 and above expressed a desire to purchase property.
Saving for a deposit remains the greatest challenge for aspiring first-time buyers, with the average UK adult having £13,200 in savings – just one fifth of the average first-time buyer deposit of £61,900. Only 15% of the UK adults surveyed save more than £500 a month. Almost half of those surveyed from Gen Z who have already purchased a house said they received financial help from their family.
Credit history concerns are also a significant factor in the likelihood of owning a home: 66% of those who had experienced adverse credit in the last six months believe it will negatively affect their ability to get a mortgage, which Pepper Money said suggests they are not fully aware of the range of options available to them.
“For example, some borrowers may be eligible for a mortgage as soon as six months after receiving a default or CCJ, provided they meet other criteria.”
The research indicates that 2.2 million people with adverse credit will be in a financial position to buy within the next three years. One third were respondents were parents with children under 18, and almost half became self-employed within the last three years.
Commenting on the report, Richard Spinks, chief commercial officer at Pepper Money, said:
“This year’s research highlights how economic pressures, evolving employment patterns and rising financial complexity are driving more consumers toward specialist lenders and brokers who can provide tailored solutions beyond the reach of traditional high street lenders. A key driver of this growth is the changing nature of work and income.”
