Almost seven in ten renters are caught in a 'deposit trap', spending more than a third of their income on housing costs, according to new research highlighting the challenges facing first-time buyers.
The report, Renters' Reality: The Housing Attitudes of Non-Homeowners, from Shared Voice and OwnHomes, found that rising rents and living costs are making it increasingly difficult for aspiring homeowners to build the savings needed for a deposit.
Fewer than one in five renters surveyed believe they will save enough to buy a home within the next two years, while more than half described saving for a deposit as a major challenge.
The findings suggest many first-time buyers remain a considerable distance from entering the housing market. Almost a third of respondents reported having less than £5,000 saved towards a future home purchase.
First-time buyers face growing deposit challenge
Despite the financial pressures, appetite for home ownership remains strong.
Nearly three-quarters of respondents said owning a home forms part of their long-term plans, while more than two-thirds supported the delivery of additional housing in their local area.
Shared Voice and OwnHomes said this demonstrates broad recognition that increasing housing supply will need to play a role in addressing affordability pressures.
The research also identified support for policy measures aimed at easing housing costs. More than three-quarters of respondents backed the introduction of rental controls, making it one of the most widely supported housing policies among those surveyed.
Alternative routes into home ownership also attracted significant interest. Almost two-thirds said they would be likely to use a scheme that helped them save for a deposit while living in the property they intended to purchase.
The scale of the savings challenge was further underlined by the finding that only one in 20 respondents had accumulated more than £50,000 towards a deposit. According to the report, the average first-time buyer deposit in England now exceeds £60,000.
“As someone in my twenties who still lives at home, the findings really resonate with me," said Millie Dodd, account director at Shared Voice. "A lot of people want to own a home, but it can feel like the goalposts keep moving.
"When so much of your income is going on rent and everyday expenses, saving for a deposit can feel incredibly difficult. You can be doing all the right things and still feel a long way from being able to buy.
"People haven't stopped wanting to own a home. The challenge is making that first step onto the property ladder achievable again.”
“For many first-time buyers, the challenge isn't the desire to own a home, it's finding a realistic way to save a deposit while meeting the cost of everyday life," said Chris Lee, co-founder of OwnHomes. "This research shows demand for homeownership remains strong, but the traditional path onto the property ladder is becoming harder for many people to follow.
"There is a clear opportunity to explore new approaches that can help a generation of first-time buyers turn that aspiration into reality."
The report suggests that while affordability remains a significant obstacle for first-time buyers, demand for home ownership continues to be resilient, with many renters actively seeking practical routes onto the property ladder despite ongoing financial pressures.
