A third of renters are saving £100 a month or less, leaving them facing a 35-year wait to build the deposit needed to buy their first home, according to new research from Skipton Building Society.
Data from Connells, part of the Skipton Group, puts the current average first-time buyer deposit at £41,403, with properties purchased by first-time buyers averaging £243,883. For renters starting from scratch, those figures translate to decades of saving at current rates, with the gap likely to widen further if house prices continue to rise.
The research, which surveyed 1,000 renters aspiring to buy, found 73% feel locked out of the property ladder. 45% said high rents are the main reason they struggle to save, and 32% are spending between 40% and 60% or more of their monthly salary on rent alone, far above the commonly cited 30% affordability benchmark.
The financial strain is taking a wider toll. 68% say they are putting their lives on hold while continuing to pay rent, and 94% have made sacrifices to try to save, including cutting back on holidays (49%) and socialising (45%), while 20% have delayed major life events such as marriage or starting a family. 43% said those sacrifices have had a negative effect on their mental health.
The survey, carried out by OnePoll, found 82% of renters agree that the ability to meet rent payments should be sufficient proof they can afford a mortgage. Yet 35% say they feel stressed about money all the time, the same proportion describe the process as long and exhausting, and 30% say they are anxious about their future.
Despite those pressures, 32% believe the effort will ultimately be worthwhile. Asked what would help most, 34% pointed to lower deposit requirements, 31% called for more genuinely affordable homes, a quarter said lenders should do more to recognise rental payment history as evidence of mortgage affordability, and 24% cited a need for more flexible mortgage options.
"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," said Jen Lloyd, head of mortgage products and proposition at Skipton Building Society.
"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."
