Leading Saving Goals For UK Tenants

News at Household | 11/01/2020

While there are clear benefits to owning property, we know many people aren’t as focused on buying a home as the media sometimes suggests. Yes, a lot of people would like to own their property but cannot afford to do so. However, there are also many people who don’t view home ownership at the ultimate aim of life, and this has been reinforced by a recent study.

What are tenants saving for?

Landbay, a buy-to-let lender, spoke to 2,000 tenants in the United Kingdom. The news that more than 75% are actively saving each month is positive, but not all tenants are looking to save money to put towards a deposit. The most commonly cited reason to save money was to go on holiday. 33% of respondents said they are looking to save money to buy a holiday, with 38% of females citing this option with 26% of men saying they are looking to save for a holiday.

23% of respondents said they are looking to save for a home, and younger tenants lead the way. 38% of respondents aged between 18 and 34 said they are saving for a deposit while 25% of 35 to 54-year olds cited this aim.

According to the study, the most pressing savings goals for tenants in the UK are:

·         Going on holiday - 33 %

·         An emergency fund - 31 %

·         Buying a house - 23 %

·         Retirement - 14 %

·         Spend on my children - 10 %

·         Buy a car - 10 %

·         Leisure (cinema, days out) - 9 %

·         Clothes - 9 %

·         Buy a new piece of technology (phone, TV, etc.) - 5 %

·         Another goal - 3 %

Make yourself happy in life

These are all valid goals, and it is not as if one is more essential than the other. No matter what aims you have in life, it makes sense to prioritise your goals, and we can help you achieve what you are looking for.

John Goodall is the CEO of Landbay and he said; “The widely held assumption that renters are simply biding their time until they can afford to buy a house has been proved wrong. Renting affords a disposable income which savers are using to fund the lifestyle they want, whether that’s a lavish summer holiday or preparing for retirement. This, alongside the increased demand for flexibility, means the private rental sector is appealing to a wider range of people, and as such is getting more necessary by the day. For the new Government, investment in the private rental sector will be crucial. The penalisation of landlords must stop, and the rights of tenants and landlords alike need to be protected.”

If you plan on letting property, we can arrange a valuation for you. At Household, we aim to connect you with likely tenants, and we can help you find the most suitable tenants. When it comes to being a successful landlord in Toddington and Dunstable, we are your local agents, so contact us today.

Alternatively, if you are a tenant looking to explore your options, we can assist you. We can help you review whether letting or intending to buy is better for you, and we look forward to assisting you any we can, so please get in touch.