Have 'Generation Rent' given up on plans to buy a home?

Nearly a quarter of renters say a higher priority is ensuring money for leisure time and regular holidays.

New research from Rightmove suggests that only two in five renters who would like to buy but cannot afford to do so are currently actively saving for the deposit needed to get them onto the housing ladder.

Of the 58 per cent that have not yet started saving for a deposit, two in five have not even set a date to start.

While a third of 'trapped renters' say that getting on to the property ladder is their number one priority, nearly a quarter are most concerned with ‘living in a desirable area’, starting/growing a family (11 per cent) and getting married (9 per cent). Around 16 per cent say that their priority is ensuring money ‘for leisure time’ and another 8 per cent that they are able to take regular holidays.

“More than half of tenants would like to buy but cannot afford to," said Miles Shipside, Rightmove director and housing market analyst, "yet over half of these have not yet begun their deposit-saving- plan to escape ‘Generation Rent’. Home-ownership must seem so far away that many find themselves in a hopeless situation.

"Tenants have been hit pretty hard in the last few years as a shortage of rental supply has left tenants facing the double-whammy of paying more rent while also hampering their ability to save for a deposit. On average, the monthly rent accounts for 37 per cent of tenants’ take-home pay and even those that are able to save anything at all are only saving 11 per cent of what they bring in each month.”

There are significant regional differences when it comes to who has started saving for a deposit - 56 per cent in London and in East Anglia say they are actively saving compared to 30 per cent in the East Midlands and 28 per cent in Wales.

When asked to evaluate how their saving efforts were going, only one in twelve current savers felt they were ‘on course’ to meet their target deposit. Another 40 per cent said that while they could only afford to save a little each month they would ‘get there eventually’. A further 39% said that they would ‘need a windfall’ in order to reach their goal.

“Demanding deposit hurdles have made the transition from tenant to first-time buyer challenging for many in recent years," said Shipside. "Those who expect to make that move this year tell us that they’ve been working towards a deposit goal of £20,000, rising to £30,000 for those in London, figures that must seem daunting to even the most frugal tenant. Even for those who’ve been diligently saving, many are still left hoping that their lottery numbers come up or the Bank of Mum and Dad proves less picky with its lending than the High Street banks. However, the Government’s proposed new Help to Buy scheme could yet prove to be a ‘virtual windfall’ by lowering the deposit hurdle to 5%, providing much-needed assistance and motivation for Generation Rent.”

Discover more property articles at Homes and Property
PROMOTED VIDEO
Property search
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

C++ Software Developer / Image Processing / 3D Visualisation

£45,000 to £55,000: IT Connections Ltd: C++ Software Developer / Image Process...

Java / J2EE Developer / Agile / Linux

£30,000 to £40,000: IT Connections Ltd: Java / J2EE Developer / Agile / Linux ...

Software Development Manager / Java / J2EE

£45,000 to £55,000: IT Connections Ltd: Software Development Manager / Java / ...

Digital Content Manager,Leicester

£24000 - £28000 per annum: Charter Selection: Leading Nationwide and important...

Day In a Page

Some are reformed drug addicts. Some are single mums. All are on benefits. But now these so-called 'scroungers’ are fighting back

The 'scroungers’ fight back

The welfare claimants battling to alter stereotypes
Amazing video shows Nasa 'flame extinguishment experiment' in action

Fireballs in space

Amazing video shows Nasa's 'flame extinguishment experiment' in action
A Bible for billionaires

A Bible for billionaires

Find out why America's richest men are reading John Brookes
Paranoid parenting is on the rise - and our children are suffering because of it

Paranoid parenting is on the rise

And our children are suffering because of it
For sale: Island where the Magna Carta was sealed

Magna Carta Island goes on sale

Yours for a cool £4m
Phone hacking scandal special report: The slide into crime at the 'News of the World'

The hacker's tale: the slide into crime at the 'News of the World'

Glenn Mulcaire was jailed for six months for intercepting phone messages. James Hanning tells his story in a new book. This is an extract
We flinch, but there are degrees of paedophilia

We flinch, but there are degrees of paedophilia

Child abusers are not all the same, yet the idea of treating them differently in relation to the severity of their crimes has somehow become controversial
The truth about conspiracy theories is that some require considering

The truth about conspiracy theories is that some require considering

For instance, did Isis kill the Israeli teenagers to trigger a war, asks Patrick Cockburn
Alistair Carmichael: 'The UK as a whole is greater than the sum of its parts'

Alistair Carmichael: 'The UK as a whole is greater than the sum of its parts'

Meet the man who doesn't want to go down in history as the country's last Scottish Secretary
Legoland Windsor's master model-makers reveal the tricks of their trade (including how to stop the kids wrecking your Eiffel Tower)

Meet the people who play with Lego for a living

They are the master builders: Lego's crack team of model-makers, who have just glued down the last of 650,000 bricks as they recreate Paris in Windsor. Susie Mesure goes behind the scenes
The 20 best days out for the summer holidays: From Spitfires to summer ferry sailings

20 best days out for the summer holidays

From summer ferry sailings in Tyne and Wear and adventure days at Bear Grylls Survival Academy to Spitfires at the Imperial War Museum Duxford and bog-snorkelling at the World Alternative Games...
Open-air theatres: If all the world is a stage, then everyone gets in on the act

All the wood’s a stage

Open-air productions are the cue for better box-office receipts, new audiences, more interesting artistic challenges – and a picnic
Rand Paul is a Republican with an eye on the world

Rupert Cornwell: A Republican with an eye on the world

Rand Paul is laying out his presidential stall by taking on his party's disastrous record on foreign policy
Self-preservation society: Pickles are moving from the side of your plate to become the star dish

Self-preservation society

Pickles are moving from the side of your plate to become the star dish
Generation gap opens a career sinkhole

Britons live ever longer, but still society persists in glorifying youth

We are living longer but considered 'past it' younger, the reshuffle suggests. There may be trouble ahead, says DJ Taylor