Renters struggle with homeownership dreams amid rising costs

A quarter (25%) of renters under 30 are considering moving back in with their parents to save money so they can buy a house – but this ambition to buy fades with age, a survey reveals.

According to SpareRoom, there are mounting challenges facing renters in achieving homeownership.

Its survey of 6,524 renters, found that along with 25% of tenants under 30 planning to move back home – 27% say they might consider it later.

The flatshare platform also found 56% of renters believe they will eventually own a property, though 14% feel it’s unattainable and 30% remain uncertain.

Affordability is an issue

A director of the firm, Matt Hutchinson, said: “The post-pandemic rush for rentals forced rents to record highs across the UK.

“However, as is all too often the case, despite the market cooling, rents never came back down again.

“Affordability was already a huge issue before the pandemic, but people have become increasingly rent burdened and are faced with tough choices: do they compromise where they live, and the quality of the home they live in, to save towards a deposit?”

He added: “Under 30s seem optimistic about their chances of eventually owning homes.

“But the plummeting home-owning expectations of renters now in their 40s and 50s, coupled with the high cost of living, makes you wonder if the expectations and the reality are aligned.”

Tenants can’t save

For those tenants who are pessimistic about buying, 65% point to the inability to save for a deposit, 67% point to insufficient earnings for a mortgage and 48% note a lack of family support.

However, 11% prefer the flexibility of renting.

Despite financial pressures, 34% of renters would be content renting long-term without societal expectations to buy, that’s down from 55% in 2021.

The desire for a place to call home drives 69.7% of respondents, closely followed by long-term financial security (68.6%) and investing in their own property rather than paying landlords (68%).

Most believe they will buy

Among under-30s, optimism persists, with 62% expecting to buy eventually and 38% anticipating a purchase within five years.

However, 40% believe it will take five to nine years, and 16% estimate a decade or more.

To achieve this, 92% plan to rely on savings, 47% will pool resources with a partner, 27% expect family or friend support and 17% anticipate an inheritance.

There are 9% who may collaborate with a sibling or parent, and 6% would consider buying with a friend.

More than half (51%) are prepared to relocate to more affordable areas, and 86% are cutting back on expenses, sacrificing dining out (63%), holidays (56%) and clothing (55%).

Older tenants won’t buy

However, optimism fades with age as only 24% of renters in their 50s expect to buy, reflecting a significant drop in confidence.

Rising rents exacerbate the issue, with average room rents climbing 29% from £576 in Q1 2021 to £744 in Q1 2025.

The proportion of renters spending more than half their income on rent has risen from 24% to 26% in the same period, with under-25s hit hardest — 40% dedicate more than half their pay to rent.

Women face a heavier burden than men, likely due to the gender pay gap and preferences for safer, pricier areas.

Older renters rise elevenfold

Mr Hutchinson said: “The number of over 65s searching for rooms in flatshares or seeking housemates has risen elevenfold in 10 years, while the number of over 55s has tripled according to our data, and the decline of homeownership is well documented.

“The real question we have to start asking is what happens to a generation who retire without having built an asset through homeownership and who clearly haven’t been able to save either?”

He adds: “This is a ticking time bomb that’ll one day blast a huge hole in the public purse if it’s not addressed now. It’s time for some proper long-term policies.”