One in three renters could face a wait of around 35 years to save enough for a first-home deposit, with rising rental costs shutting aspiring buyers out of homeownership, according to new research from Skipton Building Society⁠.

Data from Connells, part of Skipton Group, shows the average first-time-buyer (FTB) deposit now stands at £41,403, with the average purchase price reaching £243,883. For renters saving £100 a month or less, reaching that deposit target could take decades, and potentially longer if house prices continue to rise.

The survey of 1,000 aspiring homeowners found that 73% feel locked out of the property ladder, while 45% said high rents are preventing them from saving. Around a third said they spend between 40% and 60% or more of their salary on rent each month, well above the commonly used 30% affordability benchmark.

Financial pressures are also affecting life choices. More than two-thirds of renters said they feel they are putting life plans on hold while saving for a home, with many cutting back on holidays and socialising, while one in five have delayed milestones such as marriage or starting a family. Two in five said these sacrifices have negatively affected their mental health.

The findings also showed 82% of renters believe being able to afford rent should help demonstrate mortgage affordability. Many reported feeling persistently stressed about money and anxious about the future, although nearly a third said the effort to buy a home would ultimately be worth it.

The research coincides with the third anniversary of Skipton’s Track Record mortgage, a product offering up to 100% loan-to-value for eligible renters with a strong payment history.

Jen Lloyd, head of mortgage products and proposition at Skipton Building Society, said: "The figures in our latest research are a stark reminder of the pressures many are facing, often despite already demonstrating they can afford significant monthly housing costs. We believe it’s only fair that people who have demonstrated they can afford regular rental payments have a real opportunity to become homeowners, even if high rental costs have made it difficult for them to save for a deposit."

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