More tenants save to go on holiday than to put a deposit down on a home to own according to buy to let lender Landbay.
Its survey questioning 2,000 private renters in the UK, revealed that 76 per cent are saving money each month, above and beyond their workplace pension.
The average amount saved per month is £99 – men save more at £111, while women save £91. The remaining 24 per cent aren’t saving any money on a monthly basis.
When asked about their financial goals, the most common aspiration is to go on holiday. Some 33 per cent of renters are saving for this reason - rising to 38 per cent of female renters.
Coming in second, 31 per cent of tenants are saving for a general emergency fund; again, this is more common in women at 33 per cent.
Just under a quarter (23 per cent) are saving to buy a house, again led by women at 26 per cent compared to men’s 17 per cent.
The proportion of tenants saving for this purpose is highest amongst the youngest category surveyed - 18 to 34 year olds.
Older renters aged 55 and above are far more likely not to be saving than their younger counterparts, whatever the objective – 31 per cent of these older tenants save nothing at all, compared to 23 per cent of 35 to 54 year olds and 19 per cent of those aged 18 to 34.
“The widely held assumption that renters are simply biding their time until they can afford to buy a house has been proved wrong. Renting affords a disposable income which savers are using to fund the lifestyle they want, whether that’s a lavish summer holiday or preparing for retirement. This, alongside the increased demand for flexibility, means the private rental sector is appealing to a wider range of people, and as such is getting more necessary by the day” says Landbay chief executive officer John Goodall.
And he adds: “For the new government, investment in the private rental sector will be crucial. The penalisation of landlords must stop, and the rights of tenants and landlords alike need to be protected.”