Based on current average saving levels, it would take private renters 15 years to save enough for the average deposit of £30,943 on a house – two years longer than in 2013 – according to research from Scottish Widows.
The average private renter saved £2,090 in the last year, according to the eighth annual Scottish Widows Savings Report, based on a survey of more than 5,000 UK adults.
However, average private renters looking to buy a property in London face nearly double the wait, having to save for 27 years in order to achieve the average first-time buyer deposit of £56,183 for a home in the capital.
The research suggests that some people have given up on property ownership altogether, with only 13 per cent of private renters saving specifically to get on the housing ladder. A third (33 per cent) do not currently put any money aside and 29 per cent have no savings whatsoever.
But those planning to use the government’s Help to Buy initiative this year have saved on average £9,590 to put towards a deposit, which would take four and a half years to save for at current levels, cutting the wait down significantly.
David Lascelles, savings expert at Scottish Widows, said: “While the Help to Buy scheme has no doubt cut down the amount of time you have to wait to buy your own home, and has provided support to over 22,475 households so far, many renters are still facing an uphill struggle to get a foot on the property ladder, or even just to put money aside for the future.
“Home ownership may not be part of everyone’s plans, but it is vital to build up good savings habits in the here and now to see you through unforeseen events and other life milestones. Faced with high living costs, squirreling money away may sometimes seem unfeasible, but there are plenty of simple budgeting tools and tricks available from money advice centres and sites that can help renters get started.”
