Private renters remain under pressure as they spend a third of their wages on housing, a third of them struggle to meet these costs while only just over half have pulled together savings, the latest English Housing Survey shows.  

Renters spent the highest proportion of their income on housing, 34% up from 32% last year, according to the 2023 to 2024 report, by the Ministry of Housing, Communities and Local Government, subtitled Experiences of the ‘housing crisis’. 

Renters were the most likely to report difficulty affording their housing costs at 32%, against 19% of those with a mortgage. 

However, owner occupiers were the most likely to have savings, at 79%, compared to 52% of tenants. 

The most common savings amount for owner occupiers was £50,000 or more, with 33% of this group reporting savings of this amount.  

By comparison, 32% of private renters most commonly had savings between £5,000 and £15,999. 

However, the ambition of private renters to own a home was strong, with 2.6 million of them saying they expect to buy a home in the future, compared to under 1 million social tenants. 

The study says: “Younger private and social renters were more likely to expect to buy than older renters, as well as those on higher incomes, those in lone male households and those with dependent children.” 

Quilter financial planner Thomas Lambert adds the survey “demonstrates just how many private renters are caught in a state of flux.  

“Private renters not only spend the highest proportion of their income on housing, coming in at just over a third, but they are also the most likely to struggle to afford their housing costs and just half have savings behind them.  

“Those having difficulty paying rent rose considerably from 27% in 2019-2020 to 32% in 2023-24, which followed the sharp rise in rent costs seen during the cost-of-living crisis and mortgage market turmoil.” 

However, the report highlighted a strong pipeline of first-time buyers. 

The overall number of FTBs rose from 617,000 households in 2013-14, to 827,000 in 2019-20 and 975,000 in 2023-24. 

The majority of FTBs were aged between 25 and 34 years old, 60%, while 21% were aged 35 to 44 years old. 

The study points out that 15% of FTBs bought a property in London, compared with 2013-14, when 25% of this group bought a home in the capital.

Quilter’s Lambert adds: “Today’s report lays bare just how many people are stuck wanting to take their first step onto the property ladder but are faced with high housing costs and a subsequent inability to save.  

“Affordability remains a fundamental constraint, with high house prices, elevated monthly repayments and the need to build a suitable deposit all while needing to maintain current housing commitments.  

“The changes to stamp duty have compounded this further, and FTBs now face even greater hurdles.”