A third of renters save £100 a month or less and face a 35-year struggle to get onto the property ladder, with the goalposts shifting as house prices rise, Skipton research shows.
Connells, part of the Skipton Groupfound that the current average deposit for a first time buyer is £41,403, while the properties they buy average £243,883.
This means those starting from scratch will have to save for decades to reach current deposit levels, with the gap likely to widen as house prices continue to rise.
The research shows 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 salary on rent each month, which easily exceeds the affordability rule of thumb of 30%.
As a result, 68% say they feel like they are putting their lives on hold to afford a first home while continuing to pay rent.
Most (94%) have been forced to make sacrifices, from holidays (49%) and socializing (45%) to postponing important life plans such as getting married or having children (20%).
Two in five (43%) said these sacrifices have had a negative impact on their mental health.
The research was commissioned by Skipton Building Society to mark the third anniversary of its Track Record Mortgage.
The survey also found that 82% agree that if they can pay their rent, this 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 constantly stressed about money. The same added process feels long and exhausting, while 30% admit they worry about their future.
But despite the financial pressures and challenges they face, 32% believe it will be worth it in the end, OnePoll research shows.
When asked what would help most, 34% pointed to lower down payment requirements, while 31% want to see more truly affordable housing built.
A quarter would like lenders to better understand their ability to meet rent-based mortgage payments, while 24% cited the need for more flexible and accessible mortgage options.
Skipton Building Society head of mortgage products and proposition Jen Lloyd said: “It is becoming increasingly challenging for renters to get on the property ladder as they try to balance the cost of living with saving for a deposit and all the other associated costs that come with buying your first home.
“The figures from our latest research are a stark reminder of the pressures many face, often despite already demonstrating that they can afford significant monthly housing costs.”