Understanding how Gen Z views homeownership is becoming increasingly important for mortgage brokers looking to connect with the next generation of clients. In the next In Focus exclusive across Mortgage and Property Investment Magazine, Matt Kingston, Sales Director at Nottingham Building Society, shares insights from direct conversations with university students, highlighting why listening, and not just advising, will be key to building trust and improving generational engagement.
For years, the mortgage industry has debated how to “unlock” Gen Z as future homeowners. But after spending time listening directly to final-year university students exploring the mortgage market for themselves, one thing became clear: the challenge isn’t motivation. It’s understanding.
Let’s state a fact: Gen Z isn’t disengaged from homeownership. But they are cautious, sceptical, and intensely aware of risk. And those attitudes are shaped long before any conversation with an adviser ever takes place.
Trust starts from a lower base
One of the strongest themes raised by this small cohort of Gen Z students was a lack of trust in financial institutions. Not from personal experience, but from observation.
Their frame of reference is shaped by what they saw growing up: parents navigating the aftermath of the 2008 financial crisis, struggling with decisions they didn’t fully understand, and feeling they were treated unfairly when circumstances changed.
Whether those perceptions are accurate isn’t the point. For this generation, trust starts from a lower base, from the perspective of what they saw their parents experience. That fundamentally changes how – or if – they engage with mortgages at all.
For advisers, this means conversations can’t begin with product or affordability. They need to start with credibility, transparency, and education, long before any transaction is in sight.
Digital first and clarity matters
Unsurprisingly, Gen Z defaults to digital. That won’t be a surprise to you, reading this. It’s second nature now for information is sought through search, social media, online communities, forums, and, more increasingly, AI tools – often guided by visibility and perceived credibility rather than formal qualifications.
Gen Z are comfortable self-educating and will only seek adviser support once they feel confident in their own understanding. Within that, though, clarity is non-negotiable. If something isn’t quickly understandable, they won’t push through jargon.
They’ll simply find another explanation elsewhere. For advisers, this highlights a real disconnect between what the industry thinks it’s providing and how information is actually received.
Engaging this audience earlier means:
– simplifying language, not oversimplifying risk
– explaining concepts visually and clearly
– accepting that “quick understanding” is a sign of good communication, not reduced professionalism
A system that doesn’t feel built for them
Perhaps the most telling insight was how strongly students felt that the odds are stacked against them.
Graduates leaving university with £60–70k of student debt are entering:
– a more uncertain job market
– higher renting costs
– fewer perceived pathways into ownership
Homeownership isn’t seen as an obvious next step, not like it used to be. It can feel restrictive, risky, or simply unrealistic. Some students even discussed “nomadism”: countries actively attracting young skilled workers with easier routes into housing, creating a sense that opportunities may exist elsewhere rather than in the UK.
For advisers, this reframes the conversation entirely. Gen Z doesn’t need convincing that homeownership is desirable; they need confidence that it’s viable within the reality they’re facing.
Redefining “mortgage ready”
What was most striking was how differently Gen Z defines being ‘mortgage-ready’. For lenders and advisers, readiness typically means:
– income
– deposit
– credit profile
For Gen Z, readiness was broader and arguably more honest:
– job security
– flexibility
– freedom to move, travel, or change career
– confidence that they fully understand what they’re committing to
That gap matters. Advisers engaging younger clients earlier need to recognise that reassurance, education, and optionality often matter as much as rates or borrowing capacity in the early stages.
What advisers can do differently
The students I have referred to didn’t just highlight problems. They pointed toward solutions:
– Engage earlier. There is a real opportunity to build understanding and trust in schools, colleges and universities, well before people are applying for a mortgage.
– Keep explanations simple. Not just products, but the language around them. Clear explanations build confidence – and confidence drives engagement.
– Embrace them where they spend their time. Social channels, short-form content and new formats aren’t alternatives to advice; they’re gateways to it.
– Rethink flexibility. If this generation values mobility, advisers should reflect that supporting career changes, non-linear paths and longer-term planning without locking clients into rigid assumptions.
Invest in the next generation of advisers. There’s a real opportunity for people with lived experience of these challenges to support others navigating them. Initiatives like Working in Mortgages, led by AMI and IMLA, show how the industry can do this collectively.
A generation worth listening to
Despite the challenges they described, the students were thoughtful, realistic and pragmatic. They understand what they need to sacrifice. They, rightly, just want clarity, fairness, and confidence before doing so.
For advisers and even lenders, the message is simple: the opportunity to engage Gen Z exists. But only if we’re prepared to listen first, adapt our approach, and earn trust long before the first mortgage application is ever submitted.
