Renters in England could lose out on over £338,000 in potential financial gains over 30 years by not stepping onto the property ladder, according to new research from Mortgage Advice Bureau (MAB), one of the UK’s leading mortgage intermediaries.
The report compares the long-term financial implications of renting versus owning, and finds that by year two, homeowners start saving money compared to renters – a gap that only widens over time.
By year 10, the cumulative saving could exceed £12,000. If reinvested, such savings could grow significantly, reaching £338,170 by year 30 when factoring in modest investment returns.
In cities such as Bristol and Manchester, the missed opportunity is even higher, with lifetime differentials of up to £573,110. In London, renters could miss out on £540,687 – or £50 a day – largely due to rising rents and the stabilising effect of fixed mortgage payments.
FINANCIAL RESILIENCE
Ben Thompson, Deputy CEO at MAB, says: “Homeownership not only builds equity, but also offers a powerful route to long-term financial resilience.
“Many renters are closer to buying than they think. With the right advice, options like low-deposit mortgages, JBSP products and shared ownership can make buying a reality.”
Despite 65% of renters aspiring to buy, 27% say they believe they never will.
Yet MAB’s data suggests that many long-term renters have already surpassed the average time it takes to save for a deposit (2.84 years), indicating untapped potential for homeownership.
HIGH HOUSE PRICES
Barriers such as high house prices and affordability remain, but with borrowing power increasing and lender innovation returning to the market, MAB argues the window to act is opening wider.
Thompson adds: “Now is the time to speak to an adviser. Homeownership creates financial opportunity – and many renters may already be closer than they realise.”
