Millennials and the Modern Property Market

But that first clutch of millennials was born in 1981 and are now 44 years old. The pigeon-hole broad-brush portrayal as described above is dying away – or, perhaps, the baton they clutched is being handed to Gen Z, who follow closely in their wake.

What’s more, when it comes to property – and especially home ownership – the picture is starting to look quite different.

Far from giving up on it, this generation is finding its way onto the ladder – and in the process, reshaping what it means to buy, sell and live in a home.

Reshaping, in many ways, what homeowners might want to consider when preparing their homes for sale…

A Home Ownership Dream Deferred, Not Dismissed

Despite the stereotype, millennials overwhelmingly want to own their own homes, including here in Waterlooville. Surveys consistently show that between 60% and 80% aspire to buy – a figure that has barely changed from their parents’ baby-boomer generation.

What may have changed, however, is the timeline: where the preceding generation bought in their mid-twenties, millennials are typically buying in their early to mid-thirties, or beyond.

That delay isn’t due to a lack of desire or interest; it comes down to economic reality. Rapid house price growth, wage stagnation and the cost of living have pushed ownership out of reach for many. The average first-time buyer now needs to save, on average, well above £50,000 in much of the UK, especially when considering stamp duty in many cases, not to mention other moving costs and legal fees.

As it goes, the average first-time purchase price here in Havant and Waterlooville, according to data collected by the Office for National Statistics (ONS), is currently £264,000; that means saving a minimum of £13,200 for a 5% deposit, or £26,400 for a 10% deposit – and that’s before those other costs are factored in.

We are perhaps fortunate in that regard locally – the burden to save a deposit is not as high as other places in the UK. But nevertheless, even here, the result has been a generation that has had to wait, save, and increasingly rely on the Bank of Mum and Dad or – sadly – on an inheritance, in order to bridge the gap.

A Different Kind of Buyer

When millennials do buy, they buy a little differently.

For them, property isn’t so much a financial asset as a lifestyle decision. Homes are chosen for how they enable life: flexible layouts – especially nowadays for homeworking; prioritising outdoor space for wellbeing; and yes, often, proximity to cafés, gyms and parks – not just for leisure but for community connection.

Technology matters too, especially when it comes to the way they search for properties. This is the first generation of digital natives. They expect the property market to be as seamless as online shopping. From online tours and WhatsApp updates, to smart home tech and high-speed connectivity, technology is a deciding factor both in how they buy and what they buy.

It is no accident that I focus heavily on social media marketing as well as portal listings. It is because this younger generation of buyer leads the way when it comes to social media searching and property purchasing.

As mentioned though, their attitudes are not only reshaping the way agents market properties. They also now influence what properties sell better than others in many cases.

When it comes to the type of property this generation looks for, a desire for sustainability often runs deep. Green credentials, including high energy efficiency, insulation, renewable heating, and general sustainable design, aren’t just ‘nice to have’ features any longer; these are increasingly viewed as essentials – and the sellers that think about this in advance of marketing will often do better as a result.

The Rise of the Millennial Landlord

It’s not just residential homeownership that’s on the rise. Millennials are beginning to shape the rental market too.

Recent data from Hamptons shows that around half of shareholders in new buy-to-let company formations are now millennials, reflecting a new wave of investor-landlords. Not only do they share this general attitude towards sustainability when considering what to purchase, but they are also approaching lettings with a more professional mindset from the start – not least, by purchasing these properties as an entity rather than an individual.

They do see property as a wealth-building tool, often with a view to becoming ‘financially free’, but importantly they do also tend to prioritise better, higher build quality, more ethical rentals, often with an eye on design, modern condition and sustainability.

Challenges Still Remain

The barriers for millennial buyers are still significant. Affordability remains the single biggest hurdle, with house prices outpacing income growth. Many would-be buyers remain trapped in the rental sector longer than planned, paying higher rents that make saving for a deposit more difficult.

That said, news this week has shown that rates on low-deposit mortgages, i.e. 95% loan to value for residential buyers (not landlords), have fallen to their lowest level since 2022 (see Moneyfacts article here).

There is room for improvement still, but it is an encouraging sign that lenders are looking for ways to lend to this younger generation of property buyers, to break this cycle of long-term renting.

Some buyers don’t wait, though; instead, they look for more creative solutions: co-buying with friends, shared ownership schemes, and rent-to-buy models. It reflects a general shift in how ownership itself is understood.

A Generation to Watch

Millennials are no longer the new kids on the block. They are in their thirties and early forties, and increasingly becoming homeowners and landlords. The important thing to note is that their attitudes are influencing every part of the property market.

That means, for sellers, it is important to understand this generation’s priorities. It could be key to achieving an offer on your own home – especially if your property falls into the family home or first-time purchase markets:

• Millennials value authenticity and communication.
• Millennials expect tech-enabled service.
• Millennials look for homes that fit their lives, not the other way around – and they will often favour properties that meet up to their serious, often non-negotiable environmental concerns.

That means a couple of things.

When thinking about selling, consider what you can do to promote flexible living – work from home spaces, multi-generational use, and making the most of your outside space.

Also, when choosing your estate agent, be sure to think beyond looking for a simple conduit to Rightmove.

Your agent needs to be multi-channel – nay, omnichannel!

They must be contactable, approachable and available. And they must be an agent that embraces modern methods of marketing, social media, scheduling and accessibility.

The millennial era of homeownership has arrived… just a little later than planned.

And as they step forward, they are already reshaping what it means to move, live, and invest in property here in Waterlooville.

FAQ

What do millennials look for in a first home?

Millennials tend to prioritise lifestyle-led features over pure square footage. Flexible layouts for working from home, good natural light, outdoor space, and proximity to cafés, gyms and green spaces all rank highly. High-speed broadband, smart home tech and strong energy efficiency are also key considerations. Increasingly, sustainability – from insulation quality to renewable heating – is seen as a core requirement rather than a bonus.

Why are millennials buying later?

Most millennials still want to own a home, but economic pressures have pushed their timelines back. Rapid house price growth, wage stagnation, high rents, student debt and increased living costs have made saving a deposit far more difficult than it was for previous generations. As a result, many buy in their early-to-mid thirties rather than their twenties, often with help from family or through alternative options like shared ownership or co-buying.

Are millennials becoming landlords?

Yes, and they’re actually reshaping the rental sector as they enter it. Recent data shows that millennials now make up around a 50% share of new buy-to-let company formations, signalling a more professional, structured approach to investing. They tend to focus on better-built, more modern, sustainable homes and are often motivated by long-term financial planning as well as a desire to offer higher-quality, ethically managed rentals.