Renters can't save deposits, study finds

Barclays said in August 2025 that just 17% of renters were saving for a house deposit in July, down from 31% in January. (home.barclays) The same Barclays Property Insights update said spending on rent and mortgages rose 5.2% year on year in July, the fastest increase since February 2025. (home.barclays) Barclays also said 62% of renters had seen, or expected to see, their rent increase in 2025. Only 12% said homeownership was within reach within the next year, and 16% said it was possible within five years. (home.barclays) Official figures show the pressure did not disappear after that survey. The Office for National Statistics said average UK private rents rose 3.4% to £1,377 a month in the year to March 2026. (ons.gov.uk) The March 2026 average was £1,434 in England, £830 in Wales and £1,022 in Scotland, while Northern Ireland was £880 in the year to January 2026. UK house prices averaged £268,000 in February 2026. (ons.gov.uk) The government’s English Housing Survey for 2024-25 said households faced higher inflation, energy costs and interest rates during the fieldwork period. It reported substantial rises in rent and mortgage payments and a higher proportion of renters saying they struggled to pay for housing. (gov.uk) That squeeze sits inside a wider housing shortage. Resolution Foundation said in July 2025 that 51% of 19- to 29-year-olds in the UK were living with their parents in 2023-24, up from 41% in 1994-95. (resolutionfoundation.org) The think tank also said planning approvals in England hit record lows in 2024, while 48% of privately renting families on Universal Credit in Great Britain did not have all of their housing costs covered by Local Housing Allowance. (resolutionfoundation.org) For buyers who do make it onto the ladder, family money often fills the gap. The Institute for Fiscal Studies said almost half of first-time buyers in their 20s received financial help in 2018-20, with deposits averaging about £55,000. (ifs.org.uk) The same Institute for Fiscal Studies report found children of homeowners were more than twice as likely to own a home as children of renters by 2019. For renters trying to save from current income, that leaves rent as both the monthly bill and the barrier. (ifs.org.uk)