According to Paragon, which surveyed around 2,000 people living in private rented housing, found that being able to save for a deposit impacted the timeframe for buying a home.
The report found that 44 per cent of those who were not confident in saving for a deposit expected to buy a home within three to five years.
On the flip side, four in 10 who felt it was unlikely that their saving would be impeded by the cost of living crisis said they would be ready to buy in the next one to two years.
Over a quarter, 28 per cent, who were confident in raising their deposit expected to buy in the next 12 month and this fell to one in 10 of those who felt their saving ability had been compromised.
Around 35 per cent of those renting are actively saving for a house, with around 73 per cent in the process of saving for a deposit
The study also found that over a third, 37 per cent, of buyers aim to put up 10 per cent deposit. Less than a quarter, 23 per cent, already have the deposit and only four per cent were in the process of buying a property.
Richard Rowntree (pictured), managing director for mortgages at Paragon Bank, said that this latest research confirmed the “logical expectation that the pressure placed on household finances will limit the capacity for some people to save for the deposits necessary to buy their own home”.
He added: “This has implications for the private rented sector because a sizeable proportion of these aspirational homebuyers will remain in rented properties for longer while they battle the rising cost of living to put aside funds needed to secure a mortgage.
“In turn, this will place further pressure on the supply of rented homes which is already surpassed by demand, exacerbating rising rents and limiting choice for tenants.”
Rowntree continued: “This helps to reinforce my view that different housing tenures are inextricably linked, with the population moving between them influenced by their needs at the time. As a result, each tenure should be viewed equally, and policy should reflect this to minimise any barriers to much needed investment.”
