"For those who want to get on the property ladder, it is challenging to save every month due to these high costs, particularly as rents have increased over the last year."
- Jackie Davies - OneFamily
New research by financial mutual, OneFamily involved two surveys, the first in October 2023, which asked people aged 18-40 about a number of topics including their average salary, cost of rent or mortgage and overall quality of life.
The second, in February 2024, asked the same questions and showed how financial attitudes and concerns have changed in that time.
77% of renters aged 18-40 are concerned about the cost of living, compared to just 47% in October 2023.
When asked about the property market, 71% are worried about the cost of housing, compared to 51% last year.
Those who are renting privately are the most anxious about the cost of housing and the property market (80%), compared to those renting from a local authority or housing association (53%).
The research comes as a report by the ONS suggested annual private rental prices increased by 6.2% in the 12 months to January 2024, unchanged for the second consecutive month.
Michelle Steele, a 44-year-old mum renting in Southeast London is saving into a OneFamily lifetime ISA to buy a house but has had to cut down on her monthly investments due to rising costs.
She said: “I opened my lifetime ISA to start saving for a house, to put down some roots and have a nice home to continue to raise my son in. I have found that the cost-of-living crisis has made it much harder to put money aside each month – we’re all living in a very difficult economic climate.
"I was saving £100 from my salary, but I had to reduce it to £25 each month because my food costs have gone up from £50 each week to £150 and I have a growing teenager to feed. I don’t shop extravagantly, mostly Aldi or Lidl, and definitely not the expensive brands.”
Jackie Davies, Head of Customer Service and Direct Sales at OneFamily, said: “It’s a worrying time for renters, with prices of everyday items still remaining high due to the cost-of-living crisis.
"For those who want to get on the property ladder, it is challenging to save every month due to these high costs, particularly as rents have increased over the last year. But the lifetime ISA can help boost your savings, as the government tops up the savings by 25%, so every time you pay in, a bonus is added.”
