Across the UK, millions are facing this challenge. Research suggests 3.57 million renters can afford the mortgage in their area but can’t save the deposit needed to buy¹.
That gap between being able to afford a home and being able to access homeownership is becoming one of the defining housing issues of our time.
High rents, rising household bills and the increased cost of everyday living are making saving for tomorrow much harder. And when saving happens after paying rent, council tax, travel costs, food, mobile bills and everyday expenses, building a deposit can take years.
In fact, the average first time buyer age in the UK is now 35², and it takes, on average, 13 years to save a deposit³. For many hoping to buy, that doesn’t just delay homebuying. It delays life itself.
Moving out. Living independently. Starting a family. Building long-term security. Feeling settled.
Homeownership plans can sometimes feel stuck in slow motion.
Tahli’s story
Tahli understands that feeling well. At 37, she’s been saving for a deposit for nine years. Like many aspiring homeowners, she has found that renting made saving much harder than expected.
“Renting made it so much harder for me to save,” she explains. “Mainly because when you’re renting, you’re spending most of what you earn on rent and bills.”
Tahli once rented a two bedroom terrace with her best friend close to work and local amenities. She enjoyed the independence, freedom and having a place of her own.
But saving while renting was slow. And then, life changed unexpectedly when Tahli’s landlord decided to sell the property, and the company she worked for went bankrupt overnight. She had to rethink her housing situation and her career plans.
“I considered buying the house from our landlord so I could stay living there, but I didn’t have enough of a deposit to get the mortgage I needed.”
She chose to move back home with her mum in Leicestershire. It gave her the chance to retrain as a counsellor and to save more seriously towards her future. Living at home has helped her save faster, but it hasn’t replaced the independence she once had.
“It has been OK living with mum. We get along great, and I pay her minimal rent, which helps me to save more. I live in the home where I grew up. It’s in a rural location, and as lovely and quiet as it is, I do have to drive everywhere. And, let’s face it, having had that taste of freedom, I want to have my own place more than ever.”
Like many adults who move back home to save, it is a practical decision rather than an ideal one.
The cost-of-living reality
Tahli’s experience reflects a wider trend across the UK housing market.
Saving is something that happens in addition to paying rent and other expenses, rather than being part of the process. Studies suggest around 88% of renters
say that paying rent makes saving for a deposit difficult4.
Many are trying to build up thousands of pounds in savings while also covering the full cost of rent and living expenses. With everyday costs rising, many people find their savings plans slowing down or their lives being put on pause.
Changes in house prices, interest rates, and savings interest rates can leave homebuyers feeling like the goalposts keep moving. Those building a deposit are unable to move forward with life plans
This has a real emotional impact, including feelings of being stuck, frustration and anxiety about the future.
How #RentSaveOwn works
That’s why Own Homes has created a different way into homeownership.
It offers a way to combine renting and building a deposit into a single monthly payment through its homeownership scheme, #RentSaveOwn.
The scheme can help those who:
- Are able to afford a mortgage-level monthly payment
- Want to own the home they live in
- Are looking for a clear, structured route into homeownership.
Homebuyers choose a new build home from a partner housebuilder and move in when it’s built. Each month, they pay a fixed amount, similar to the amount they would pay for the mortgage. Part of that payment covers the rent. Another part goes into a dedicated savings pot that builds toward the future deposit month by month.
Because the saving element is built into the monthly payment, homebuyers don’t have to save on top and can build a deposit to buy within five years.
They live in the home they plan to own, and benefit from knowing:
Where they will they live longer-term
What they pay each month
Their deposit is growing.
When ready, homebuyers apply for a mortgage, pay their deposit, and then buy the home.
For Tahli, owning a home is important to her future, “A home to me is about family, warmth, security and safety. Mum has always rented and never had that security. My goal is to own my home.”
The possibility of owning sooner
For Tahli, the idea of combining rent and savings into a single, predictable monthly payment makes sense.
“I’ve been saving for nine years, yet I could have been a homeowner four years ago with Own Homes. If my deposit savings came out of my rent, I could save without thinking about it,” she says, “and I could already be on the property ladder.”
That idea of “saving without thinking about it” may resonate with many. Why? Because when saving becomes part of your monthly housing payment, it may feel
more realistic, more consistent and easier to achieve.
For many aspiring homeowners, this approach could help them rent and save a deposit at the same time, helping them achieve the goal of buying a home within five years.
Launching soon
Own Homes is launching later this year, but you don’t have to wait until then to find out whether this rent-to-own option could work for you. Visit ownhomes.com/how-it-works/.
Because owning a home should feel achievable.
1 3.57 million renters – torridgeandtavistockconservatives.org.uk/news/we-need-housing-solution-resentful-renters
3 13 years – mortgagestrategy.co.uk/news/first-time-buyers-face-13-year-savings-slog-to-buy-get-on-housing-ladder/
4 88% of renters – nationwide.co.uk/media/news/home-truths-rising-cost-of-living-forces-first-time-buyers-to-put-plans-on-ice-for-now
First Time Buyer is an exciting bi-monthly glossy which takes a stylish and comprehensive look at all the options available, setting them out in an entertaining and informative way, and helping potential customers navigate their way through what is often a daunting and complex process. We dispel the myths, reinforce the facts and arm the reader with the tools necessary to make their homeownership dreams a reality.
