Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

One in Three Renters Face 35-Year Wait to Save House Deposit, Skipton BS Finds

A third of UK renters are saving £100 or less per month towards a house deposit, according to research by Skipton Building Society. The findings suggest these renters could wait 35 years before having enough saved to buy a home, as average first-time buyer deposits now stand at £41,403.

Skipton Building Society surveyed 1,000 renters and found that 73% felt locked out of the property ladder, with 45% blaming high rental costs for making it difficult to save. The average first-time buyer property price was reported as £243,883, and the research highlighted that renters saving £100 per month would not reach the required deposit for around 35 years, especially as house prices continue to rise.

The survey also found that 32% of renters spend 40% or more of their salary on rent each month, exceeding the commonly cited affordability guideline of 30%. Additionally, 68% of renters said they had put their lives on hold to save for a first property while paying rent, and 94% reported making sacrifices such as missing holidays (49%), socialising less (45%), or delaying life plans like marriage or children (20%).

Mental health impacts were also noted, with 43% of renters saying these sacrifices had a negative effect. When asked what would help, 34% wanted lower deposit requirements, 31% called for more affordable homes, 25% suggested lenders should consider rental payment history for mortgage eligibility, and 24% wanted more flexible mortgage options.

The research was commissioned to mark three years since Skipton Building Society launched its Track Record mortgage, which offers up to 100% loan-to-value for eligible renters based on their rental payment history. According to the survey, 82% of renters believe that being able to afford rent should be enough to prove mortgage affordability.

These findings highlight ongoing challenges for renters and may be of interest to letting agents and inventory clerks monitoring trends in the UK rental and first-time buyer markets.