It's basically the "should I buy or rent" question. If I could comfortably afford it, I'd buy, so probably not take a 35 year mortgage and save a bit longer for a bigger deposit and better rate. If it would be a big struggle to afford it, I'd rent, then maintenance is the landlord's problem, not mine. The barrier to long term renting being desirable rather than expedient, is the assured shorthold tenancy model. As a landlord with an eye on the long term, I'd be happy to use a lease with more security for the tenant and a much longer notice period, with reasonable safeguards against twuntishness.
With a retirement age of 67, a 35 year loan will only be available to under 32 year olds, ie a loan for longer than they've been alive. I can see that being quite a strong psychological barrier to some.