We’ve all heard the phrase “Generation Rent” – describing young adults who rent for longer before buying. Here in Lancaster, it’s more than just a headline. Rising living costs, modest wage growth, and tighter mortgage rules have reshaped the housing journey for our under-34s. For many, buying isn’t impossible – it’s simply further down the line.
But how big is the challenge? And what does the future hold for younger Lancaster residents wanting that first step onto the property ladder?
A Snapshot of Lancaster’s Young Adults
Across Lancaster, there are around 59,980 households. Just 4.3% are headed by people aged 16–24, and 12% by those aged 25–34. Compared nationally, Lancaster’s younger age group is higher than the 2.6% average, but slightly lower for the older group, which sits at 13.5%.
How do they live?
For 16–24-year-olds in Lancaster:
- Owned outright: 3.3%
- Owned with a mortgage: 10.2%
- Social housing: 14.6%
- Private renting: 71.9%
(Nationally: 3.6% / 10.2% / 22.8% / 63.5%)
For 25–34-year-olds in Lancaster:
- Owned outright: 4.3%
- Owned with a mortgage: 39.8%
- Social housing: 10.8%
- Private renting: 45.1%
(Nationally: 4.1% / 35.5% / 17.7% / 42.7%)
The takeaway? Renting – especially privately – is the norm. Homeownership is happening later than it did in the 1980s.
Why Is This Happening?
It’s tempting to blame it all on rising house prices and stagnant wages. Yes, saving for a deposit is harder. While the percentage needed (minimum 5%) hasn’t changed, the cash amount has grown significantly. Add higher rents, bigger bills, and student loans, and saving can feel like an uphill battle.
Mortgage criteria are also stricter. Lenders assess income, spending, and credit in more detail than in previous decades.
Yet here’s something surprising – real wages are 23.8% higher than in 2000. People are, on average, earning nearly a quarter more in real terms than 25 years ago.
The challenge is affordability. In 2002, the average first-time buyer spent 24.6% of their income on mortgage payments. Today it’s 34.9%. While this is still below the 44.9% peak of 2007, it’s a noticeable rise.
So yes, incomes are higher, but so are property prices, deposits, and monthly repayments. It’s not one single cause – it’s a combination.
The Changing Face of the First-Time Buyer
In the 1980s, the average first-time buyer was around 26 years old. Today, it’s 31 – and 34 in London.
This isn’t just a UK shift. In countries like Germany, it’s common to rent into your late 30s or 40s, often buying later with more savings, less debt, and greater stability.
The Silent Power of £7.26 Billion in Lancaster
One overlooked factor is the wealth of Lancaster’s older generations. The over-50s here hold more than £7.26 billion in housing equity. Many bought decades ago when prices were much lower.
As these homeowners downsize or pass on their estates, a significant transfer of wealth could help younger family members onto the ladder – not just through saving alone, but with inheritance or family support.
What Could Happen Next?
The current numbers may seem daunting, but they don’t spell permanent exclusion from homeownership. For many, it’s simply about timing.
The future is likely to be shaped by two things – cultural change (accepting that buying later is normal) and intergenerational wealth (family help with deposits).
At JDG, we’re already seeing this shift. More first-time buyers are receiving family support, while others are waiting, saving steadily, and buying when the right home comes along.
Yes, the challenge is real – but so is the opportunity. Lancaster’s younger generation aren’t locked out forever. They’re just waiting for the right door to open.
So, could this be the calm before the next wave of first-time buyers? What are your thoughts?
Thanks for reading
Michelle x
