Buying a home of their own has become an unrealistic goal for many renters, with saving for a deposit being the biggest burden for the majority.
A survey of 2,000 renters carried out by Intus Lettings, a nationwide lettings agency based in Manchester, reveals the best places for renters to live if they want to save for a deposit – and it might not be where you think.
The region where people are most active in saving up for a deposit is London, where over 70 per cent of respondents were doing so despite the high property prices. Surprisingly, fewer tenants were saving for a deposit in more affordable regions such as the East Midlands (49.21 per cent), the North East (50 per cent) and the South East (51.48 per cent).
More than a third of tenants surveyed (38.83%) said that they are putting no money aside, and 15.41 per cent said they put aside less than £50 a month.
Finally, when tenants were asked whether they felt confident about their prospects of owning a home, four in 10 believe that they will own a property in the future (40.9 per cent), with almost as many (36.47%) feeling less confident.
Renters in Yorkshire and the Humber (49.67 per cent) and London (46.12 per cent) were the most confident overall.
Hope McKendrick, Head of Lettings at Intus Lettings, said: “The results confirmed some things we already knew, such as the number of tenants renting because they cannot afford to buy a property. However, the fact that tenants in London are the most proactive in saving up for a deposit was surprising to us as the capital is usually regarded as the least affordable region in the country.”
She added: “From a landlord’s perspective, it demonstrates that there is still a strong demand for rental accommodation and that many tenants are looking for long-term homes rather than something more temporary – and they should keep this in mind when they advertise their property on the market.”