Over a third (39 per cent) of those renting a home in the UK are not saving any money towards buying their own home, according to new research.
A survey of over 2,000 renters, conducted by Intus Lettings, has revealed that people renting a home are more likely to save for a holiday (60 per cent) than for a deposit on a property (47 per cent) in the next 10 years.
Other costs which renters prioritise saving for include Christmas (29 per cent), cars (36 per cent) and a fund for a rainy day (37 per cent).
The research indicates that simply keeping up with rental payments may be a more pressing priority for many renters than saving towards a deposit, as more than half (51 per cent) said that they have worried about not being able to pay rent due to financial difficulty.
Hope McKendrick, Lettings Manager at Intus Lettings said: “As property costs continue to rise faster than wages in the UK, renters’ ambitions to purchase a home may be giving way to saving for more readily attainable goals such as a holiday or new car.”
Of those surveyed, 18-24-year-olds are the most optimistic about their chances of affording a home, with 55 per cent believing they will be able to purchase their own home in the future. This is despite 39 per cent of this group currently saving no money towards a deposit. Conversely, fewer than a third of renters over 45 think they’ll ever own their own home.
Hope McKendrick added: “The lack of cash which renters are able to save towards a property seems to start having a real impact as they get older, as each age group surveyed is considerably less likely to believe they’ll ever own their own home.
“Although our research has shown that nearly half of tenants intend to save for a deposit in the next 10 years, high costs within the UK housing market mean this isn’t always possible for renters.”