Buying a house ‘no longer main financial goal for renters’ – Goodall

However, we do know that three quarters of renters are saving money each month, above and beyond their workplace pensions.

So where is that money going? What are renters splashing their cash on?

Going on holiday

As a society, we are moving towards valuing experiences above assets, with holidays being near the top of the list of go-tos in the experience economy.

Perhaps then it is no surprise that holidays came out on top for renters’ spending goals. A third proclaimed they were saving to go on holiday, be that a lavish summer holiday in the Caribbean or a staycation in Brighton – for renters, a trip away tops the list.

Emergency funds

Second on the list, 31 per cent of savvy savers are stashing cash away for a rainy day.

This flexible-living cohort might lease their cars and stream their films, but they still know that an unexpected expense can arise out of the blue and prove problematic for your wallet.

Financial gurus recommend that everyone has an easy-access account with money that will see them through three to six months’ worth of essential outgoings, and renters are abiding by this rule by saving for an emergency fund.

So much for young adults spending on avocados and lattes though – only 19 per cent of 18-34 year-olds are failing to save each month, beating their elder counterparts.

In contrast, 23 per cent of 25-54 year-olds are spending their whole income each month, as are a huge 31 per cent of those aged 55 and over.

Buying a house

Enthusiasm in the private rented sector (PRS) for owning a home is waning.

Less than a quarter of renters are saving for a house deposit, with women leading the charge at 26 per cent to men’s 17 per cent.

Perhaps unsurprisingly, younger renters are most likely to be pocketing the pennies with an eye to getting on the property ladder – 38 per cent of 18-34 year-olds are saving to buy, compared to 25 per cent of 35-54 year-olds.

Other top savings goals for UK renters include saving for retirement (14 per cent), spending money on children (10 per cent), buying a car (10 per cent), and leisure activities such as going to the cinema or family days out (nine per cent).

Housing no longer top priority

Disposable income is used to fund the lifestyle people want to live, and it’s clear that owning a house is no longer the main financial goal for renters.

As the PRS becomes ever more vital to the UK housing market, landlords must make a concerted effort to understand their tenants.

Those who really comprehend the wants and needs of renters in the UK will be most equipped to provide the best accommodation, the best service, and ultimately generate the best yield from buy-to-let properties.