A third of renters save £100 a month or less and face 35 years of hard work to get on the property ladder, with targets changing if house prices rise, according to research by Skipton.
Connells, part of Skipton Groupfound that the current average deposit for a first-time buyer is £41,403, with the average property they buy being £243,883.
This means those starting from scratch face decades of saving just to reach today’s deposit levels, and the gap is likely to widen if house prices continue to rise.
The research found that 73% feel “left out” of the property ladder, while 45% blame high rents for making it difficult to save. In fact, 32% spend 40 to 60% or more of their paycheck on rent each month, far exceeding the 30% affordability rule.
As a result, 68% say they feel they will put their lives on hold in order to buy their first property while still paying the rent.
Most (94%) had to make sacrifices, from vacations (49%) and socializing (45%) to delaying major life plans, such as getting married or having children (20%).
Two in five (43%) said these sacrifices had a negative impact on their mental health.
The research was commissioned by Skipton Building Society to celebrate the third anniversary of its mortgage register.
The research also found that 82% agree that if they can afford their rent, that 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 percentage find the additional process long and stressful, while 30% admit they are worried about their future.
But despite the financial pressures and challenges they face, 32% believe it is worth it in the end, according to the survey conducted by OnePoll.
When asked what would help most, 34% cited lower deposit requirements, while 31% expressed a desire to see more affordable homes built.
A quarter want lenders to better understand their ability to afford rent-based mortgage repayments, while 24% cited a need for more flexible or more accessible mortgage options.
Jane Lloyd, head of mortgage products and propositions at Skipton Building Society, said: “Getting on the property ladder is becoming an increasing challenge for renters, as they try to balance the cost of living, 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 face, despite already showing they can afford significant monthly housing costs.”
