According to research from Yorkshire Building Society, which studied 10,000 people as part of the Building Financial Foundations campaign, renters have an average of £440 disposable income per month, which is nearly half the £872 homeowners reported.
This is equal to £5,280 per year for renters and £10,464 for homeowners annually.
However, the report said renters are more “proactive” in managing their money, with 27% checking their credit score monthly compared to 20% of homeowners.
Approximately 38% of renters said improving their financial situation was a top priority, and 18% are planning to buy a house in the next five years.
Renters pointed to barriers such as lower incomes, limited savings and higher housing costs than homeowners.
The report found that while the amount of income spent on a mortgage or rent has risen since 2019, renters have seen a larger increase of 2% compared to homeowners, who saw it go up by 0.9%.
A third of renters said they have no investments or savings at all, and renters that do have savings have 80% less than the average homeowner.
However, renters are more likely to prioritise emergency savings and financial stability compared to homeowners, who tend to focus on maintaining their lifestyle or making home improvements.
| City | Homeowner disposable income (£) | Renter disposable income (£) | Disposable income gap (£) | Percentage difference |
| Norwich | 563.2 | 431.8 | 131.4 | 23% |
| Liverpool | 744.3 | 443.7 | 300.6 | 40% |
| Birmingham | 836.1 | 468.4 | 367.7 | 44% |
| Leeds | 711.7 | 396.8 | 314.9 | 44% |
| Belfast | 679.5 | 377.6 | 301.9 | 44% |
| Sheffield | 661 | 357.3 | 303.7 | 46% |
| Nottingham | 781.1 | 410.3 | 370.8 | 47% |
| Cardiff | 619 | 313.3 | 305.7 | 49% |
| Glasgow | 623.3 | 314.9 | 308.4 | 49% |
| Bristol | 840.8 | 409.3 | 431.5 | 51% |
| Manchester | 964.2 | 469.2 | 495 | 51% |
| London | 1167.6 | 550.1 | 617.5 | 53% |
| Southampton | 731.2 | 340.1 | 391.1 | 53% |
| Edinburgh | 866.6 | 402.1 | 464.5 | 54% |
| Brighton | 825 | 335.1 | 489.9 | 59% |
| Plymouth | 779.1 | 252.6 | 526.5 | 68% |
Current system makes it harder for renters ‘to succeed’
Ben Merritt, director of mortgages at Yorkshire Building Society, said: “Everyone deserves the opportunity to build a secure financial future, but for millions of renters across the UK, that future feels increasingly out of reach.
“Our research shows renters are not lacking in ambition – they’re actively prioritising financial stability, checking their credit scores, and working hard to improve their situation. But they’re doing so in a system that makes it harder for them to succeed.
“The opportunity gap isn’t about motivation – it’s about the material barriers renters face every day. We know that for many, renting is an important pathway to homeownership, giving people the opportunity to demonstrate that they can meet financial obligations.”
He continued: “And for those who manage to reach it, homeownership can lead to greater financial confidence and security. This is why Yorkshire Building Society is launching the Building Financial Foundations campaign to spotlight these challenges and offer practical solutions.
“For those who want to own their own home, our First Home Saver account helps people build a deposit through regular saving, rewarding them with a competitive interest rate, and our £5k Deposit Mortgage link makes homeownership more accessible for those who may find it hard to save a large deposit.
“If we want to build a more equitable, financially resilient society, we must ensure renters have the same opportunities to plan, save, and invest in their futures as homeowners do.”
