By Dharshini David , Deputy economics editor , Raphael Sheridan , Economics reporter and Jess Carr , Data designer Published 21 August 2026, 00:10 BST Updated 8 hours ago Leaving education, getting a job, buying a home and perhaps starting a family: the path previous generations followed may seem a distant dream to many now. But is it getting a bit easier - at least when it comes to getting on the housing ladder? Today's prospective first-time buyers may well feel hard done by; they are still worse off than recent generations. If you were born in the UK in the mid-1990s you've about a 25% chance of owning your own home, as this chart shows. Twenty-somethings in the 1990s were almost twice as likely to be on the housing ladder, the previous generation even more so. But before looking at the current picture, what's behind the longer term shift? One issue is that property prices have outpaced incomes across many decades. In the chart below, housing economist Paul Cheshire puts it starkly, comparing the rise in egg prices with house prices over the past 71 years. Changes in the mortgage markets have contributed, but ultimately it's about a lack of housebuilding. The government previously estimated that England alone needs another 300,000 dwellings per year to keep up with population change and our preference for living in smaller households. But only 208,000 were added last year. We've not built close to 300,000 new homes in a year for at least three decades. There are many reasons why, but inflation has been key - from the price of land, to builders' wages and bricks. Our analysis shows that the cost of raw materials like timber, steel, plasterboard, concrete and insulation rose in line with general inflation from the 1990s until the Covid-19 pandemic, when they became harder to source. That was compounded by the impact of the war in Ukraine, which drove up both the cost of energy - 15% in a single year - for making these materials and for use in construction itself. The war in Iran has pushed prices up further. Even before the pandemic, more than one in five construction firms struggled with a lack of skilled staff, exacerbated by Brexit. As a guide, a home that cost 150,000 to build in 2015 may cost 230,000 now - analysts say those costs could rise by another 15% in the next five years. And that's before contending with planning. Strict regulations protect the environment and uphold safety standards but can add costs. The rising - and increasingly unpredictable - cost of building, coupled with uncertain demand has put some housebuilders off. As property prices have increased, the deposit needed to buy a house has reached tens of thousands. The amount to get a 10% deposit varies sharply across the country. Saving for a deposit becomes particularly hard if you're paying rent too. Private rents typically soak up a third of prospective buyers' incomes. No surprise a larger number...
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