More renters are saving to go on holiday (33%) or for an emergency fund (31%) than for a deposit to buy a home (23%), according to research from Landbay.
The buy-to-let lender found that three quarters (76%) of UK tenants are saving money each month, above and beyond their workplace pension.
The average amount saved per month is £99 – men save more at £111, while women save £91. Just a quarter of renters (24%) aren’t saving any money each month.
Yorkshire has the lowest proportion of non-savers, with just 19% not contributing to the piggy bank each month. This is followed by the North East (20%) and East of England (21%).
At the other end of the saving league table, almost a third (30%) of the South West are failing to save, followed by the South East (27%) and East Midlands (25%).
Contrary to popular belief, renters are not simply saving to buy a house. When asked about their financial goals, the most common aspiration is to go on holiday. 33% of renters are saving for a vacation – this is truest for women, with 38% looking to jet off compared to 26% of men.
John Goodall, CEO at Landbay, 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.”