A third of renters are saving £100 a month or less and face a 35-year slog to get on the property ladder, with the goalposts moving if house prices climb, according to research from Connells.
Connells, part of the Skipton Group, found that the current average first-time buyer deposit is £41,403, with properties they are buying averaging £243,883.
This means those starting from scratch face decades of saving just to reach today’s deposit levels, with the gap only likely to widen if house prices continue to rise.
The research found 73% feel ‘locked out’ of the property ladder, with 45% blaming high rents for making it difficult to save. In fact, 32% are spending 40 to 60% or more of their salary on rent each month, far exceeding the 30% affordability rule of thumb.
As a result, 68% say they feel they are putting their lives on hold in order to afford a first property while continuing to pay rent.
Most (94%) have been forced to make sacrifices, from holidays (49%) and socialising (45%) to delaying major life plans, like marriage or having kids (20%).
Two in five (43%) said these sacrifices have had a negative impact on their mental health.
The research was commissioned by Skipton Building Society to mark the third anniversary of its Track Record Mortgage.
The research also found 82% agree that if they can afford their rent, it should be enough to prove they can afford a mortgage.
However, when it comes to saving for a deposit while renting, 35% say they now feel stressed about money all the time. The same proportion added process feels long and exhausting, while 30% admit they are anxious about their future.
But despite the financial pressures and challenges they face, 32% believe it will be worth it in the end, according to the survey carried out by OnePoll.
When asked what would help most, 34% pointed to lower deposit requirements, while 31% want to see more genuinely affordable homes being built.
A quarter would like lenders to better recognise their ability to afford mortgage payments based on rent, while 24% cited the need for more flexible or accessible mortgage options.
Skipton Building Society head of mortgage products and proposition Jen Lloyd said: “Getting onto the property ladder is becoming increasingly challenging for renters, as they try to balance the cost of living with saving for a deposit and all the other associated costs that come with buying your first home.
“The figures in our latest research are a stark reminder of the pressures many are facing, often despite already demonstrating they can afford significant monthly housing costs.”
