Unews World
Fewer renters reported they are actively saving for a deposit in July, compared with the start of this year, a survey indicates.
Less than a fifth (17%) of those surveyed in July are actively building a house deposit, down from around three in 10 (31%) when similar research was carried out in January 2025, the Barclays Property Insights research found.
Nearly two-thirds (62%) of renters in the latest survey said they have seen, or expect to see their rent increase this year, squeezing their ability to save for a deposit.
Some 12% believe that home ownership is within reach within the next year, increasing to 16% who believe they can get on the property ladder in the next five years.
Common ways to find savings for a deposit include reducing discretionary spending, cutting back on holidays or using a side hustle to generate extra income, according to the survey.
Affordability pressures are also limiting choices, as more than a third (37%) said they are unable to afford to buy a home in the area where they currently rent or would like to live in the future.
Around a quarter (26%) of renters said they are struggling to afford their monthly payments, compared with around one in seven (15%) home owners who feel the same way about their mortgage.
Nearly half (45%) of renters said they are adjusting their spending habits to ensure they can continue to afford their housing costs.
Many mortgage lenders have recently announced changes to their lending criteria, potentially enabling some people to take out bigger loans.
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Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “Many people dream to one day own a home, but our latest findings highlight how renters are finding it ever harder to save for a deposit while keeping up with rising costs.
“More positively though, we’re still seeing savers create strong habits, and consider carefully the balance between getting into the market quickly with a lower deposit or trying to minimise monthly repayments in the longer term.”
Barclays commissioned Opinium Research to carry out a survey of 2,000 people across the UK in July.
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