Affordability remains a central constraint for younger households. Money Ready research found that 48% of 18-40 year-olds have experienced housing insecurity in the past five years, including rent or mortgage arrears. SpareRoom reported average UK room rents at a record £769 per month in Q3, while inner-London room rents reached £1,002. Separate research indicates that many renters aspire to buy, yet 44% expect to rent for life.
There are still signs of product innovation: Teachers Building Society for Intermediaries has increased selected new-build lending to 95% LTV, and The Cambridge has launched a 98% mortgage. However, a low deposit is only one part of the advice conversation. Clients need a realistic assessment of total housing costs, resilience to payment shocks, service charges or ground rent where applicable, and the long-term implications of extended mortgage terms.
AI opportunity: Budgeting and affordability tools can help advisers model deposit-building plans, repayment sensitivity and the trade-offs between shared ownership, high-LTV lending and continued renting. Outputs should support—not replace—a full affordability and vulnerability discussion.