New research has revealed that a third of renters in the UK currently pay no money into a savings account in the hope of one day buying their own home. In addition, the findings showed that the average British renter doesn't believe they will have enough funds saved up for a house deposit until 2023.
The survey, conducted by money saving website www.VoucherCodesPro.co.uk, polled 2,986 private accommodation tenants. Although the majority of those surveyed said they did put aside money for a house deposit in their monthly savings, 38% said they had so far failed to do so.
When questioned why, the most common response was that they simply could not afford to save money for a deposit while paying rent and keeping on top of other outgoings. On the other hand, 38% admitted they would rather just spend the money.
“This is worrying," George Charles of VoucherCodesPro said. "So many Britons want to get themselves onto that first step of the property ladder, but simply cannot because of the inflated house prices in the UK. Taking this, as well as high rental prices into account, means that a majority of Britons cannot afford to pay their rent, bills and other expenses and also put money into savings for a house deposit.”
He added: "Whilst it will be interesting to see during the next couple of years what happens with interest rates for those looking at investing in a first-time buyers mortgage; it is also expected that a large percentage of adult Britons are opting to stay at home, or move back in, with parents in order to save up more money.”