Renters in the UK now need an astonishing 20 years to save enough for a typical home deposit, according to shocking new research that exposes the deepening housing affordability crisis.
The Impossible Saving Challenge
Analysis by the Resolution Foundation shows first-time buyers must now save for two decades to accumulate a 10% deposit on an average home – three years longer than before the pandemic. This grim milestone comes as soaring rents consume ever-larger portions of young people's incomes.
Key Findings:
- Private renters spend 33% of income on housing costs vs 18% for mortgage holders
- Londoners face worst situation – requiring 26 years to save a deposit
- Under-35s now twice as likely to rent as own property
A Generation Priced Out
"We're creating a permanent divide between property haves and have-nots," warns housing economist Sarah Coles. "When saving takes longer than most relationships last, the system is fundamentally broken."
The research highlights how the average deposit has risen to £26,000 outside London (£55,000 in the capital), while wages stagnate and living costs soar.
Potential Solutions
- Longer mortgage terms (35-40 years) to reduce monthly payments
- Shared ownership schemes with smaller deposit requirements
- Rent-to-buy programs allowing rental payments to contribute toward purchase
With a general election approaching, all major parties face pressure to address what's fast becoming the defining social issue for young Britons.
