New research revealed most people in the UK wait until the age of 30 to start saving for a house, despite hoping to start saving by 27.
Savings and mortgage provider The Nottingham Building Society conducted a study to find out the top 10 biggest priorities for adults in Britain when saving money. The study surveyed 2,000 adults in the UK on what age they wished they had started investing in different areas of their lives, including health, careers and money management, and what age they actually started saving for these priorities.
The top three most important saving priorities were saving for a retirement fund, ‘rainy day’ fund, and house deposit or increasing equity. The most common priority Britons are actually saving for is a ‘rainy day’ fund. On average, people wished they had started saving for a house by the age of 27, but most Brits didn’t start saving until 30. In the study, 29% of Brits are currently saving towards a holiday, while only 13% are saving for a house deposit, even though saving for a deposit was ranked as a more important priority overall.
Jenna McKenzie-Day, senior savings manager at The Nottingham Building Society, commented: “Our research found that on average, homeowners wish they had begun planning to buy their first home three years earlier than they started, with a similar picture being painted for those saving for their future.”
The study shows that despite stepping on the property ladder being a top priority for most Brits, many aren’t able to start saving until later than they’d hope. Nowadays, there is less urgency for people to move out of rentals, and high property prices have led many to remain tenants for longer.
With more young adults becoming long-term renters and with Generation Rent getting older, renters in the UK are forecast to outnumber homeowners by 2039. And as rental demand remains high, there is plenty of room for growth in the buy-to-let market across the UK.