A third of renters are saving £100 a month or less and face a 35-year slog to get on the property ladder – with the goalposts moving as house prices climb.
According to data from Connells, the current average first-time buyer deposit stands at £41,403, with properties they are buying averaging £243,883. This means those starting from scratch face decades of saving just to reach today’s deposit levels, with the gap only likely to widen if house prices continue to rise.
Research by Skipton Building Society of 1,000 renters aspiring to buy found 73% feel ‘locked out’ of the property ladder, with 45% blaming high rents for making it difficult to save. In fact, 32% are spending 40 to 60% or more of their salary on rent each month, far exceeding the 30% affordability rule of thumb.
As a result, 68% say they feel they are putting their lives on hold in order to afford a first property while continuing to pay rent. The majority (94%) have been forced to make sacrifices, from holidays (49%) and socialising (45%) to delaying major life plans, like marriage or having kids (20%). Two in five (43%) said these sacrifices have had a negative impact on their mental health.
The research also found 82% agree that if they can afford their rent, it should be enough to prove they can afford a mortgage. However, when it comes to saving for a deposit while renting, 35% say they now feel stressed about money all the time.
But despite the financial pressures and challenges they face, 32% believe it will be worth it in the end. When asked what would help most, 34% pointed to lower deposit requirements, while 31% want to see more genuinely affordable homes being built.
A quarter would like lenders to better recognise their ability to afford mortgage payments based on rent, while 24% cited the need for more flexible or accessible mortgage options.
Jen Lloyd, head of mortgage products and proposition at Skipton Building Society, said: “Getting onto the property ladder is becoming increasingly challenging for renters, as they try to balance the cost of living with saving for a deposit and all the other associated costs that come with buying your first home. The figures in our latest research are a stark reminder of the pressures many are facing, often despite already demonstrating they can afford significant monthly housing costs.
“In many cases, renters are already meeting payments comparable to a mortgage, but the barrier of saving a deposit continues to hold them back. We believe it’s only fair that people who have demonstrated they can afford regular rental payments have a real opportunity to become homeowners, even if high rental costs have made it difficult for them to save for a deposit.
"But buying a property can unlock much more than homeownership – it can provide greater stability, support long-term wellbeing, and give people the confidence to move forward with major life plans."
