Renters save for holidays rather than a deposit

More renters are saving for the primary purpose of going on holiday (33%) or establishing an emergency fund (31%) than for a deposit on a home (23%).

The research, from buy-to-let lender Landbay, likely signals that renters see going on holiday as a more realistic goal than raising the money for a deposit.

People typically save £99 a month – £111 for men and £91 for women.

John Goodall, chief executive of Landbay, said: “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.”

Older renters (55+) are far more likely not to be saving than their younger counterparts – 31% save nothing, compared to 23% of 35-54-year olds and 19% of those aged 18-34.

Yorkshire has the lowest proportion of non-savers, with just 19% not contributing to the piggy bank each month. This is followed by the North East (20%) and East of England (21%).

At the other end of the spectrum, almost a third (30%) of the South West are failing to save, followed by the South East (27%) and East Midlands (25%).