Across every tenure, the Survey shows a housing system under strain. Urgent action is needed to increase supply, improve affordability and give consumers confidence in the market. That includes reforming the home buying and selling process, supporting first-time buyers, and ensuring the PRS remains a viable and attractive sector for responsible landlords.
Propertymark’s continuing work with policymakers is focused on ensuring the challenges highlighted by the EHS lead to practical, long-term solutions that benefit members, the sector, and consumers.
Higher deposits and older buyers
Buying a first home remains a significant challenge. Average deposits have increased again (now sitting at £78,131), reflecting higher property values and lending rules that require substantial upfront savings. As a result, the typical first-time buyer is older than in previous years, often spending longer in the PRS before they can afford to move.
Mortgage costs also continue to absorb a large share of income. Even though interest rates have steadied from recent peaks, repayments remain high relative to earnings. A growing proportion of buyers now rely on financial support from family members or postpone homeownership altogether.
These trends strengthen the rationale for the home buying and selling reform currently under consultation by the UK Government. Propertymark has surveyed members to underpin our response, which will reinforce our longstanding call for a more efficient and transparent system that reduces delays and gives consumers greater certainty.
Growing pressure and shifting demographics
The PRS remains the second-largest tenure in England, and the EHS suggests that demand continues to outstrip supply in many areas. Rents have risen further over the past year, putting pressure on household budgets and limiting renters’ ability to save.
The profile of renters is also changing. While young adults continue to make up a large share of the sector, more families now rent long-term, and the number of older renters has grown. Many still hope to buy one day, yet fewer expect to do so soon because of high rents and the difficulty of saving for a deposit.
A stable, well-supported PRS remains essential to housing millions of people who cannot access social housing or afford to buy. The first phase of reforms under the Renters’ Rights Act are due to come into force in May 2026, and Propertymark is working to ensure members are well prepared to adapt and thrive under the new regime.
More income spent on housing
Housing affordability remains one of the biggest challenges for both renters and homeowners. Private renters spend close to a third of their income on rent, and in some regions, the share is even higher. Social renters continue to spend the least, demonstrating the essential role of genuinely affordable housing.
For homeowners, mortgage pressure has increased, particularly for those who bought recently or have remortgaged in the current interest rate environment. Higher borrowing costs have pushed more mortgaged households close to the edge of affordability, and the number experiencing arrears has risen, although not to levels seen during the height of the cost-of-living crisis.
The EHS highlights how thin many households’ financial margins now are. This has real implications for agents supporting landlords, tenants, buyers and sellers who may be facing heightened financial stress.
London: a market under even greater strain
The capital continues to differ sharply from the rest of England. Housing costs remain the highest in the country for both renters and buyers, and the gap with other regions has widened. Renters in London spend a larger share of their income on housing than any other group in the survey.
The tenure mix also stands out. London has a significantly higher proportion of private renters and fewer owner-occupiers than elsewhere. Households tend to rent for longer before buying, and first-time buyers are much more reliant on family assistance to enter the market. Fewer London renters believe they will be able to buy in the short term, with some choosing to move out of the capital in search of more affordable housing.
These pressures underline the need for well-designed policies that support both renters and landlords and avoid reducing supply in areas already facing extreme demand.
