Renting vs. Buying in 2025: Is the Property Ladder Still Within Reach?

by Ella Chisholm

Setting foot on the property ladder has traditionally been considered a milestone of adulthood, but between rising inflation and stagnant wages, do renters still aspire to own a home - and can they afford to?

A new survey conducted by SpareRoom on expectations around homeownership revealed half of respondents (56%) believe they will be able to buy property at some point. Meanwhile, 14% think they’ll never get on the property ladder, and 30% are unsure.

One of the main obstacles cited by those who said they don’t think they’ll ever be able to afford to buy was being able to afford a deposit (65%), with a similar proportion (67%) saying they don’t earn enough to qualify for a mortgage. Despite many renters feeling unable to afford to buy alone, it would seem they can't rely on the financial aid of family members either, with almost half of renters (48%) saying their family couldn’t help them with a deposit.

The biggest influencing factor of those wanting to buy is ‘having somewhere to call home’ (69.7%), which surprisingly, outweighed financial benefits factors such as ‘having long-term financial security’(68.6%) and ‘paying into something I own rather than to a landlord’ (68%).

Gen Z is optimistic

Of the survey respondents, those under 30 – and therefore mostly Gen Z – had a more optimistic outlook on homeownership compared to older renters. More than six in 10 (62%) under 30s expect to buy property at some point, and 38% expect to do so within the next five years. However, 40% believe it will take them five to nine years, and 16% say it will take 10 to 15 years.

Here’s how they plan to do it:

  • 92% will use savings
  • 47% will team up with their partner
  • 27% will get financial help from family or friends
  • 17% will use inheritance
  • 9% will team up with a sibling or parent
  • 6% will team up with a friend

However, it won’t be without sacrifice. 25% of Gen Z renters admitted that they would have to consider moving back in with their parents to save money, with a further 27% saying that it’s something they may have to consider in future. More than half (51%) accepted that they would have to relocate to be able to afford to buy, and 86% are cutting down on their expenditure to save towards homeownership.

The top five things under 30s are cutting back on to save towards homeownership (in order):

  • Eating out
  • Holidays/weekends away
  • Buying clothes
  • Drinking alcohol
  • Socialising

But, it would seem older generations are a little more cynical, with expectations of homeownership decreasing dramatically in renters over 50 to 24%.

The reality

Renters are spending more of their take-home pay than ever on rent, with three-quarters spending more than 30% - meaning that the majority qualify as being ‘rent burdened’. Over a quarter (26%) surpass this threshold, spending more than 50%.

This is partly because UK average room rents have increased in the past 4 years, from £576pm in Q1 2021 to £744pm in Q1 2025, whilst wages have remained stagnant. Under 25s, who have not yet reached their earning potential, are feeling the pinch most, with 40% spending more than half their take-home pay on rent.

Unsurprisingly, women are the most affected, spending 9% more of their monthly take-home pay on rent, compared to men, likely due to factors that include the gender pay gap and the want to live in safer areas where rents may be higher.