Some 44% of renters see a deposit as one of the biggest barriers to owning a home, with 22% of those saving, setting aside an average £254.90 each month.  

The data comes from the latest edition of Barclays Property Insights.

Across all age groups, renters anticipate it will take 4.5 years to accrue their deposit. 

Gen Z, who are saving an average of £191 per month, are the demographic who expect to build their deposit fastest, at 3.9 years on average. Millennials, who are perhaps more established in their careers, average £313 per month, and expecting to be able to buy after 4.7 years. 

Some 17% aren’t saving a set amount, instead putting money aside as and when they are able.  

The Barclays analysis says that to build a deposit, renters are using a combination of reducing their outgoings and seeking extra income. 

Half (51%) cite cutting back on day-to-day discretionary spending, and almost as many (45%) are going on fewer holidays. 

Meanwhile, 31% have taken on extra work and 40% report starting a ‘side hustle’.   

More generally across the property landscape, typical spending on rent and mortgages increased 4.6% year-on-year in May, below the 5.2% recorded in April.

However, those owners nearing the end of five-year fixed-rate mortgages are anticipating increased costs as they roll off onto comparatively higher rates. Meanwhile, spending on utilities rose 4.4%, the first recorded rise in over a year, likely due to the energy price cap changes that came into effect in April. 

Some 29% of mortgage holders report they either have or will be remortgaging in 2025. Of this group, more than seven in 10 predict that their repayments will rise after remortgaging, estimating they will pay an extra £331 per month on average, the equivalent of £3,972 per year. 

Those who took out five-year fixes in 2020 will likely be rolling off onto comparatively higher rates, whereas those approaching the end of a two-year fix may see a reduction in repayments. 

Following the Bank of England’s recent rate reduction, over a third of those remortgaging this year are considering transitioning to a longer fixed-rate deal when they remortgage. Others, perhaps expecting further rate cuts in the short-to-medium term, would prefer more flexibility. 

A quarter would now consider a Standard Variable Rate (SVR) and 7% are looking for a tracker mortgage.