A recent survey has revealed that the 18-34 age bracket is the most likely to be saving up to buy a house. As renters get older, this is less likely to be their goal.
Contrary to popular belief, it would seem that younger adults are actually spending their money on more than just avocado toast and lattes.
38% of 18-34 year olds said that they were saving every month with the intention of buying a house in the survey of 2000 UK renters, conducted by buy-to-let lender, Landbay. This is compared to 25% of 35-54 year olds, and a mere 3% of 55+.
It is worth bearing in mind that this study was conducted solely on renters, so the argument cannot be made that older age groups aren’t saving for a house because they already have one. Perhaps this is a case of giving up on the idea of owning property after many years of comfortably renting?
The study also went on to find that younger renters have a much clearer idea of what they are saving up for. 40% of 55+ had no clear savings goal in mind, compared to 29% of 35-54 year-olds and just 17% of 18-34 year-olds.
75% of UK tenants said that they were saving some money each month, and the average amount being £99. Women save £91 on average, and men save slightly more, at £111.
What renters are saving for may be a surprise, though. For renters as a whole, the most common savings goal was going on holiday. 33% of surveyed renters said that travelling was their top financial priority, followed by an emergency fund (31%) and buying a house in third place (23%).
The top 10 savings goals for UK renters 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 %