Four in 10 renters ‘can’t save for a mortgage deposit’

saving for a deposit

saving for a depositAre you trying to save up money for a mortgage deposit but find that there's just nothing left to put aside at the end of the month?

If so, you are not alone. According to a new survey, four in ten renters say that they spend so much on living costs and loan repayments every month that they are simply unable to save for a deposit.

The study for SpareRoom also found that around one in seven tenants spend more than two-thirds of their wages on their rent alone, while 15% said they regularly have to resort to their savings to make it to the end of the month.

One in five of those polled said they did not know whether they would ever be able to buy a home, while just under a fifth said it would take them at least ten years to get on the property ladder.

Young people under the age of 30 seem to find it particularly hard to save up for a mortgage deposit, with six in ten saying they often cannot make ends meet without dipping into their savings.

Average rent rises to £712

Since more and more of us are now having to rent, it's becoming increasingly difficult to find rented accommodation - and prices have gone up accordingly.

According to a new study from LSL Property Services, the average rent across the UK now stands at £712 a month, with rates in London up 4.2% to £1,038 compared to last year.

SpareRoom director Matt Hutchinson said: "Soaring living costs mean it's a struggle for many households just to keep their heads above water each month, let alone have enough spare cash to put aside (money) towards a deposit."

If you're unsure whether you should continue renting or buy a property, you might want to have a look at this guide to help you make the best decision for you and your family.