Homeownership dream rebounds - but more than half fear it will never become reality

The findings suggest that this lack of confidence is being compounded by widespread misunderstandings about mortgages, which may be causing would-be buyers to rule themselves out before exploring their options.

Among aspiring homeowners:

●      62% believe they need a deposit of at least 10%, despite the availability of lower-deposit mortgages.

●      49% think borrowing is always limited to four or five times their income, although some lenders now offer higher income multiples to eligible borrowers.

●      47% believe the lowest interest rate automatically means the cheapest mortgage overall, overlooking fees and total costs.

●      40% assume their existing bank will offer them the best mortgage deal.

●      25% think they cannot explore mortgage options until they have found a property.

High costs are stopping homeowners from moving

The survey also reveals the scale of the barriers facing existing homeowners. Nearly three-quarters, 74%, say financial factors such as mortgage rates, deposits and stamp duty would need to improve to make moving easier.

Lower mortgage rates would encourage 42% of homeowners to move, rising to 50% among mortgage holders. More than a third, 36%, point to lower stamp duty, while 31% identify lower deposit requirements.

However, cost is only part of the problem. More than a third of homeowners, 37%, say reforms to the buying and selling process would make moving easier. One in four want transactions to become legally binding earlier to reduce fall-throughs, while 20% want a quicker, more digital process.

A shortage of suitable housing is also restricting movement, particularly among older homeowners. Nearly a third, 32%, of homeowners aged over 55 say more appropriate homes, including bungalows and other later-life housing, would help them move, compared with 27% of homeowners overall.

Paula Higgins, Chief Executive of the HomeOwners Alliance, said:

“It is deeply concerning that more than half of aspiring homeowners believe they will never get onto the ladder. Some face very real affordability barriers, but others may be counting themselves out because of outdated assumptions about deposits, borrowing limits or their eligibility for a mortgage.

“At the HomeOwners Alliance, we provide free, independent guidance to help people understand their options and make informed decisions about buying and owning a home. But information alone will not solve the problem. The government and industry must also tackle the high cost of moving, improve the buying and selling process and ensure the right homes are being built for people at every stage of life.”

Several findings from the survey have already been released separately in partnership with ARCO (Association of Retirement Community Operators), LifeSearch and the Federation of Master Builders. The publication of the 2026 HomeOwner Survey brings together the full results in one report for information and reference.

Shortage of retirement housing revealed

Research supported by ARCO reveals strong interest in specialist retirement housing: 41% of homeowners aged 75 and over would consider it for themselves, while 53% of homeowners would consider it for a family member.

But supply is failing to meet demand. Among homeowners interested in specialist housing, 53% say there are not enough suitable options in their local area.

Residents are particularly attracted by professional management, certainty over monthly costs, access to healthcare, emergency support and opportunities for social and recreational activities.

Homeowners exposed by gaps in financial protection

Research conducted in partnership with LifeSearch reveals major misunderstandings about income protection and a worrying lack of preparation for the financial impact of being unable to work.

Almost half of homeowners, 47%, mistakenly believe income protection covers redundancy, rising to 61% among those who already have a policy. More than a quarter, 26%, wrongly believe conditions such as anxiety and depression are not covered, despite mental health being a leading cause of claims. Meanwhile, 19% assume government support would be sufficient if they could not work, and 21% believe employer sick pay removes the need for additional protection.

This lack of understanding is compounded by limited financial preparation. Almost two-thirds of homeowners, 63%, have not reviewed their household budget in the past year, while 78% have not calculated how many months of expenses they could cover from emergency savings.

Four in ten homeowners who have protection, or have previously considered it, have never reviewed their cover or reconsidered taking out a policy. The findings suggest many households may be less financially resilient than they assume and could struggle to meet their mortgage and everyday living costs following illness or injury.

Lack of trust in builders costs the economy £11.2 billion a year

Separate research conducted with the Federation of Master Builders finds that a lack of consumer confidence is holding back essential home improvement projects and costing the UK economy.

One in five homeowners, 19%, has postponed building work because they could not find a builder they trusted. This represents an estimated £11.2 billion of lost economic activity each year.

More than two-thirds of homeowners, 68%, say mandatory licensing would increase their confidence in builders. Currently, anyone can call themselves a builder without having to demonstrate basic competence. A significant 82% of homeowners say they would be willing to pay more to hire a licensed builder with proven skills.

Much of the work being postponed is driven by need rather than cosmetic improvements. More than a quarter, 27%, want to upgrade electrics, plumbing or heating to keep their homes safe and habitable, while 24% need to address structural problems or disrepair.

Paula Higgins added:

“Across the housing market, consumers want to act but often lack confidence, clear information and protection. Unlocking the market means making it easier and safer to buy, move, plan for later life and improve a home.

“Working with trusted partners helps us uncover these concerns, bring them into the public debate and push for practical change that puts homeowners and aspiring homeowners first.”

The 2026 HomeOwner Survey is the HomeOwners Alliance’s 10th annual survey.