A high proportion of renters in the UK still wish to become home owners at some point despite the fact that many do not have any savings.
The results over the past decade have not changed, when asked, three out of five renters have indicated that they aspire to home ownership in the future.
64% of households did not have savings in the 2016-2017 tax year according to the data released by the English Housing Survey.
This rose from 54% in the 2014-2015 edition of the survey.
30.4% of respondents had more than £16,000 saved, while a third of those surveyed had less then £5,000 saved.
The results indicate a disparity between the amount most would realistically need in order to pay a deposit on a home and the level of savings that they possess as the average cost of a home in England is £240,000. A 10% deposit would mean that most of those surveyed would be unable to afford it.
An increase in the age of those surveyed does not necessarily mean an increase in savings as 69% of renters in the 45-64 age bracket have no savings, compared with those in the 16-24 bracket at 61%.
While the desire to buy still remains, the lack of resources has resulted in a more long term approach, with three quarters of those surveyed expecting their planned purchase to be over two years away, which is up from 65.8% recorded 10 years ago.
The Bank of Mum and Dad could figure in the plans of some prospective home-buyers, as according to Legal & General, friends and family gifted £6.5 billion towards property purchases in 2017 and 62% of home owners bought homes in this fashion.
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Information is based on our current understanding of taxation legislation and regulations which is subject to change.
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