Rent restricts prospective homeowners from saving

People who rent their home save the least amongst adults in the UK. Whilst less than a third (30 per cent) of current homeowners with a mortgage don’t manage to save money each month, 45 per cent of renters don’t save anything at all – meaning that renting before buying could hinder the crucial savings needed to join the property ladder.
 
The biggest group of savers was found to be those living with their parents, who save an average of £257 per month. Amongst those with mortgages that do save, a third of these save up to £499 per month. Contrastingly, the majority of renters who do save put away less than £50 per month (21%).
 
Tim Johnson, CEO of Paymentshield said:

“Today’s renters are in a really tough situation. Apart from not being able to save for that all important property, they have very little to fall back on, should the worst happen.”
 
The lack of savings for renters also means that they are the most likely to rely on outside help if their income was to stop. Only 15 per cent would be able to cope financially for more than four months.

Tim Johnson added:

“With an unpredictable economic climate and housing market, we’d encourage as many renters as possible to look at ways to protect their income sooner, rather than later.”