Gen Z: How to buy a home by 2030
Calling all Gen Zers! Here’s how to buy a home by 2030
Planning is key when it comes to buying a home. Deciding where you want to live, saving up for a deposit and finding a suitable place that meets your needs and budget all take time. How long, exactly, depends on your circumstances and the future you envision for yourself. But if you’re a member of Gen Z and want to buy a home in the next few years, you need to know about the government-backed renting schemes that can help you get there.
Rent to Buy and London Living Rent are designed for people just like you, who want to become homeowners but don’t yet have the means to. Keep reading to learn more about these initiatives and how they can help you achieve your dream of homeownership.
Gen Z and homeownership: The challenges
Buying a home is a life goal for a large proportion of Gen Z. Data from the National Centre for Social Research shows that 81% of this generation would buy a home if they could. But affordability is causing a massive barrier to realising this. The main aspects contributing to this issue are:
- Cost of living: For many individuals and households, the combination of slow-growing wages and price inflation on everything from utilities to food has created a disparity between monthly incomings and outgoings.
- Property prices: According to Zoopla’s April 2025 edition of the House Price Index, the average house price is set to increase by 2.5% by the end of this year. If this trend continues, the average house price in the UK could exceed £360,000 or £750,000 in London by 2045.
- Saving for a deposit: A recent study from NatWest found that a quarter of 18-35 year olds have less than £500 in savings. Additionally, 49% cited a lack of disposable income as their biggest barrier to saving. For many in Gen Z, the combination of essential living expenses and social spending makes it difficult to put money aside for a future deposit.
How rental schemes offer a solution
Taking this into consideration, the prospect of buying a home in the traditional sense may seem like a pipe dream. But there is another way: renting schemes. These government-backed initiatives offer an alternative route to homeownership to buying on the open market. Plus, they’re the antithesis of escalating private rentals, which can make it challenging to save.
Rental schemes offer new-build homes at a reduced market rate, enabling you to put the savings towards a deposit you can use to buy the property. It allows you to live independently in your own place, giving you the freedom to focus on your career progression, enjoy your social life and pursue hobbies, all while saving for your future.
Below, you’ll find more information on the available renting schemes, depending on where you live.
What is Rent to Buy?
Rent to Buy, also known as rent to own, is a housing scheme available to eligible renters across England (apart from London). Rents are typically set at 80% of the local market average with a fixed rate of inflation, resulting in a 20% subsidy. This reduced rate allows you to put the difference towards a deposit to buy the home either outright or with Shared Ownership.
Rent to Buy homes are offered on assured shorthold tenancies, usually up to five years, making it an ideal option if you want to step onto the property ladder by 2030. As part of the offering, you’ll get a savings plan to help you achieve this goal during or by the end of your tenancy.
What is London Living Rent?
London Living Rent is a housing scheme available to eligible renters in the capital. It forms part of the Mayor of London’s Homes for Londoners plan to tackle the capital’s housing crisis. The Mayor sets the rent benchmarks based on a third of average local household incomes and adjusted for the number of bedrooms in each home. Therefore, rent amounts vary depending on the area, but in most boroughs, rents are significantly lower than the market level.
London Living Rent homes are offered on stable tenancies with a minimum of three years but can extend up to 10 years. The reduced rent allows you to save money towards buying the home with Shared Ownership.
Use our property portal to find Rent to Buy and London Living Rent homes in your area.
Planning ahead
Now that you’re aware of the renting schemes that could support your home-buying aspirations, it’s time to take action to achieve them. We’ve put together three tips to set you up for success:
- Be open-minded with your plan
Sometimes unexpected things happen, so it’s ok if the goal posts move and you have to adjust timescales. Generally, Rent to Buy tenancies last up to five years, while London Living Rent tenancies run from three to 10 years, and you can purchase the home at any point during your tenancy. Plus, you’ll be given support during your tenancy to help you keep your savings goal on track.
- Get mortgage-ready
Mortgage lenders will assess your credit rating to decide whether to offer you a loan. So, it’s wise to check your credit report, correct any errors and take actions to improve your credit score if necessary. These can include registering on the electoral roll at your home address, using credit cards responsibly and paying bills and rent on time. As you get closer to your property purchase, speak to a specialist mortgage broker who can help you find the best loan for your circumstances. Our mortgage hub has lots of resources to help you understand this loan type and the application process.
- Budget effectively
Creating a budget and sticking to it can help you manage your money effectively. If you’re unsure where to start with budgeting, begin by looking at your monthly incomings and outgoings to see if or where you could reduce your spending. Alternatively, do a quick search on social media – you’ll find countless AI prompts that will create a tailored financial plan for you.
When buying a home, you’ll have other costs to cover on top of your deposit, such as legal fees and, possibly, stamp duty. Our mortgage affordability calculator can give you an idea of how much you could afford to spend on a mortgage each month, based on your income, expenditure and any other financial commitments.
Find your home today
Use the Share To Buy property portal to search for homes in your area and discover all the buying scheme options available.
