The biggest barrier to owning a home isn’t what you think
By Steve Mariner, Sales and Marketing Director, Barratt Redrow
For many people in the UK, the dream of owning a home can feel like it’s slipping further away. New research conducted with Own New shows just how widespread this feeling is. More than a third (36%) of non-homeowners believe buying a home may simply be unachievable in their lifetime. Another third (33%) say they could get there, but it will take longer than they’d like.
These aren’t just numbers on a page, they represent real people who are delaying major life milestones, whether that’s starting a family, putting down roots in a community, or simply feeling the stability of having a place to call their own.
When we dug deeper into the reasons why, the same barriers came up again and again. The single biggest hurdle is the cost of monthly mortgage repayments or high interest rates, with nearly a quarter of people (23%) saying this is what’s keeping them out of the market. The second most common barrier, affecting 21%, is saving enough for a deposit. Both of these challenges are made even harder by the rising cost of living, high rents, and wage growth that isn’t keeping pace with house prices.
It’s no wonder that so many people feel stuck. But here’s the good news: there are options out there that can make homeownership more achievable than you might think.
One of the most promising solutions is the Rate Reducer mortgage, an innovative scheme created by Own New. It’s available through a wide range of homebuilders, including Barratt Homes, David Wilson Homes and Redrow, and works in partnership with major lenders. The aim is simple, to lower your mortgage interest rate and reduce your monthly payments, making it easier to buy your first home or move up the property ladder.
Why lower monthly payments matter
The link between monthly affordability and accessibility is undeniable. Our research found that 75% of millennials, the generation most likely to be juggling rent payments while trying to save for a deposit, said that if their monthly mortgage payment was lower than their rent, or lower than their current mortgage, owning a home would suddenly become much more achievable.
It’s a powerful reminder that for many would-be buyers, the stumbling block isn’t necessarily the price of the property itself, it’s the ongoing cost of financing it. Rate Reducer tackles this head-on. By working with the lender to apply an up-front financial contribution from the homebuilder, it effectively “buys down” your mortgage rate for an initial period. This can mean paying hundreds of pounds less each month compared to a standard mortgage, freeing up income for other expenses or savings.
Bridging the deposit gap
Of course, monthly affordability isn’t the only challenge. Saving a deposit remains a significant obstacle, particularly for first-time buyers. Many believe they need a deposit of 10% or more, which on today’s average house prices can feel impossible without years of scrimping. While Rate Reducer is primarily designed to tackle high monthly payments, it’s also available with only a 3% deposit, helping buyers address both up-front expenses and ongoing mortgages costs when buying a new build home.
Changing perceptions about new builds
Another interesting insight from the research was that while many buyers see the appeal of new-build homes, from energy efficiency to no maintenance costs, they often perceive them as more expensive than older properties. But this isn’t the case, especially when factoring in the running cost savings a modern home offers. But even where the purchase price is similar, the affordability boost provided by Rate Reducer can make a new build the smarter financial choice.
Why expert advice matters
As with any major financial decision, it’s vital that buyers fully understand their options. Affordable homeownership schemes work best when people have clear, honest information and guidance tailored to their circumstances. That’s why I always recommend speaking to a qualified mortgage adviser before making any decisions. They can help you explore what’s available, explain the long-term implications, and ensure you choose a product that works for you now and in the future.
A step towards turning “maybe one day” into “today”
While we can’t pretend challenges don’t exist, we also shouldn’t overlook the fact that innovative solutions are emerging to address them.
Schemes like Own New’s Rate Reducer aren’t a silver bullet, but they are a meaningful step in the right direction. By directly tackling the biggest barrier people face, high monthly mortgage payments, they can help turn the dream of homeownership from “maybe one day” into a reality much sooner.
If you’ve been holding back from looking at the property market because you’re worried about affordability, now might be the time to take another look. You may find that with the right mortgage product, that front door key is closer than you think. Just take a look at the Barratt Homes, David Wilson Homes or Redrow websites for examples of schemes to help you get on the housing ladder.
Source: Own New Omnibus Research 2025, conducted by Savanta in collaboration with Own New and Barratt Redrow. Data collected 10–11 May 2025, total sample size 2,074.
