Property Renters Prioritise a Holiday Over Buying Deposits

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The buy to let property rental sector is expected to remain strong, as renters prioritise a holiday over saving for a property deposit.

In a study questioning 2,000 private renters in the UK, Landbay reveals that three quarters (76 per cent) of UK tenants 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. Just a quarter of renters (24 per cent) aren’t saving any money each month. 

Age plays a significant role in savings behaviours. Older renters (55+) are far more likely not to be saving than their younger counterparts – 31 per cent save nothing, compared to 23 per cent of 35-54-year olds and 19 per cent of those aged 18-34.

However, contrary to popular belief, renters are not simply saving to buy a house. When asked about their financial goals, the most common aspiration is to go on a holiday. 33 per cent of renters are saving for a holiday – this is truest for women, with 38 per cent looking to jet off compared to 26 per cent of men.

Coming in second after a holiday, a financially savvy 31 per cent of renters are saving for an emergency fund. Again, this is more common in women at 33 per cent than men at 28 per cent. However, men are more likely to be saving for retirement, with 18 per cent preparing for later life compared to 12 per cent of women.

Of course, some renters are leaving holiday mode to take the first step onto the property ladder although their scale is surprising. 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.

Perhaps unsurprisingly, younger renters are leading the homeowning aspirational charge – 38 per cent of 18-34 year-olds are saving to buy, compared to 25 per cent of 35-54 year-olds. A mere 3 per cent of 55+ year olds are looking to save a home – of this age group, the largest proportion (40 per cent) have no savings goal in mind, compared to 29 per cent of 35-54 year-olds and just 17 per cent of 18-34 year-olds.

The top 10 savings goals for UK renters are:

  1. Going on holiday – 33 per cent
  2. An emergency fund – 31 per cent
  3. Buying a house – 23 per cent
  4. Retirement – 14 per cent
  5. Spend on my children – 10 per cent
  6. Buy a car – 10 per cent
  7. Leisure (cinema, days out) – 9 per cent
  8. Clothes – 9 per cent
  9. Buy a new piece of technology (phone, TV etc.) – 5 per cent
  10. Another goal – 3 per cent

John Goodall, CEO, Landbay commented: ‘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.

‘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.’

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