Lower income families face 22-year wait for house deposit

Lower to middle income households currently face a 22-year wait to save up for a deposit on their first home, according to a report out today.

The Resolution Foundation says this compares to just an eight-year wait in 2001 and would be even longer for those living in London.

In its report, The Essential Guide to Squeezed Britain, the think tank warns that this is pushing a growing number of people into the private rented sector, and for longer periods of time.

Matthew Whittaker, author of the report, says: “For those who rent privately, the picture is one of increasingly short supply, rising prices and frequent dissatisfaction with issues from security of tenure to contract charges.”

The report shows that 8% of lower to middle income tenants are behind with their rent, 10% say they are dissatisfied with their current private rented accommodation, and over a quarter disagree that the private rented sector is a ‘good tenure’.

It also reveals that 52% of lower to middle income households never expect to buy their own home, compared to 27% of higher income households.