As digital tools become an increasingly important part of the homebuying journey, younger buyers are researching and making decisions in new ways long before they speak to a broker or view a property. For our next ‘In Focus‘ article, Mark Manning, Group Managing Director of Northern Estate Agencies Group (part of LRG), explores how technology and AI are transforming the first-time buyer experience, and why the mortgage and property sector must combine digital innovation with trusted professional advice to support the next generation of homeowners.
Technology has significantly changed the way younger buyers approach decisions about home ownership. They are better informed in some respects, more anxious in others and less willing to accept a simple instruction to “get on the ladder” without understanding the trade-offs, and technology is central to the decision-making.
From browsing to asking
The property portal is still central to the British housing market. Rightmove says consumers spent 16.8 billion minutes on its platform in 2025. Furthermore, the behaviour around that journey is changing.
The buyer who once searched for a two-bedroom flat in a chosen postcode can now begin with a broader question, such as: where can I afford to live within 45 minutes of work, with good transport, enough space, acceptable running costs and a mortgage that will not leave me exposed?
A seemingly straightforward change in the platform’s functionality can significantly change the way in which decisions are made.
AI is becoming an early adviser
Lloyds Bank research found that 59% of 18- to 24-year-olds and 61% of 25- to 34-year-olds are embracing AI in the homebuying process. Again, technology is leading the search: among first-time buyers, 78% are using AI to help navigate getting onto the property ladder.
AI is not only being used to find properties, but to interpret the decision. A young buyer may ask whether they should rent or buy, which area offers the best value, whether a mortgage is realistic, or what a leasehold clause actually means.
Other common uses include estimating costs, translating jargon, comparing property prices and thinking about interiors or gardens.
For lenders, the mortgage conversation is moving earlier. Buyers may test affordability before they speak to a broker, before they view a property and sometimes before they have chosen a location. They will also use technology to test professional opinion.
Digital confidence is not the same as financial confidence
However, because younger buyers are comfortable with technology, we might get the impression that they are comfortable with the buying process, but that is not the same thing.
Research by Lloyds Bank found that only 13% of first-time buyers said they fully understood the process of buying a home. TikTok was cited as a popular source of advice. As professionals, this is an important fact for us to bear in mind: if buyers are turning to social media because it explains the process more clearly than the industry does, then we have a new competitor.
The human role becomes more important
Of course we would argue that technology can never fully replace professional advice. While AI helps buyers form questions, compare options and reduce confusion, a broker, lender or property professional remains necessary to test whether the answer is suitable.
In a regulated market, that important role will remain – because property purchases and mortgages are not playlists or travel recommendations; they are long-term financial commitments.
Location will become more analytical
AI will also change how buyers choose locations. Traditionally, people relied on family knowledge, a familiar town, an agent’s description or a manageable commute.
Those factors still matter, but younger buyers can now compare schools, transport, flood risk, broadband, energy performance, price trends, service charges and local amenities before they book a viewing.
Ultimately, that could make buyers more mobile: if someone cannot afford their first-choice town, technology can suggest places with similar travel times, lower entry prices and better affordability. And for those working from home, the location is perhaps of less importance than the size of the property.
A better transaction supports ownership
The industry is well aware that the homebuying process itself also needs to catch up. The government’s home buying and selling reform consultation says the current process takes an average of 120 days after an offer is accepted, and around one in three transactions fail, costing buyers and sellers about £400m a year in wasted costs.
For a first-time buyer in a hurry (and today’s Millennials and Gen Zs are known to expect instant gratification), that damages confidence. Digital ID, upfront information, better property data, logbooks and real-time progress tracking will make the route into ownership more attractive.
I do not think the industry needs to persuade younger people that ownership matters; what they need is a clearer, more modern path towards it.
