"Our research shows renters are not lacking in ambition—they’re actively prioritising financial stability, checking their credit scores, and working hard to improve their situation. But they’re doing so in a system that makes it harder for them to succeed."
- Ben Merritt - Yorkshire Building Society
Renters in the UK are left with just £440 of disposable income each month after paying for bills and essentials, almost half the £872 reported by homeowners. Despite tighter budgets, renters are more proactive in managing their finances, with 27% checking their credit score monthly compared to 20% of homeowners.
Limited disposable income, combined with the perception that house deposits are unattainably high, is preventing many renters from progressing towards homeownership, even among those who aspire to it. Around 35% of households in the UK are rented, including approximately 4.7 million homes in the private rented sector and another 4 million in the social rented sector.
These findings come from Yorkshire Building Society’s “Building Financial Foundations” campaign, which explores the link between homeownership and financial resilience. The campaign tracks the financial behaviours and wellbeing of 10,000 UK adults and highlights a growing “opportunity gap” between renters and homeowners—a gap driven not by ambition, but by access to financial stability and wealth building.
While 38% of renters say improving their financial situation is a top priority, just 18% plan to buy a home in the next five years. Lower incomes, limited savings, and higher housing costs than homeowners are cited as key barriers.
Since 2019, both owner-occupiers and private renters have seen the proportion of their income spent on housing rise, with renters seeing a larger increase (+2%) compared to homeowners (+0.9%). According to the 2023-24 English Housing Survey, twice as many renters (30.6%) find affording their housing costs fairly or very difficult compared to homeowners (14%).
A third of renters (32%) have no investments or savings at all, and those who do have savings hold 80% less than the average homeowner. Yet renters remain ambitious, often prioritising emergency savings and financial stability, whereas homeowners tend to focus on lifestyle maintenance or home improvements.
High perceived deposits also discourage renters from pursuing homeownership. Research from Yorkshire Building Society in 2024 indicates people believe they need an average deposit of £67,000 to buy a suitable home.
“Everyone deserves the opportunity to build a secure financial future, but for millions of renters across the UK, that future feels increasingly out of reach,” said Ben Merritt, director of mortgages at Yorkshire Building Society. “Our research shows renters are not lacking in ambition—they’re actively prioritising financial stability, checking their credit scores, and working hard to improve their situation. But they’re doing so in a system that makes it harder for them to succeed.
“The opportunity gap isn’t about motivation—it’s about the material barriers renters face every day. Renting can serve as an important pathway to homeownership, demonstrating the ability to meet financial obligations. For those who reach homeownership, it can lead to greater financial confidence and security. This is why Yorkshire Building Society is launching the Building Financial Foundations campaign to spotlight these challenges and offer practical solutions.
“For those who want to own their own home, our First Home Saver account helps people build a deposit through regular saving, rewarding them with a competitive interest rate, and our £5k Deposit Mortgage link makes homeownership more accessible for those who may struggle to save a large deposit.
“If we want to build a more equitable, financially resilient society, we must ensure renters have the same opportunities to plan, save, and invest in their futures as homeowners do.”
