Homeowners could be six times wealthier than renters by retirement – what this means for First-Time Buyers
If you’re currently renting and hoping to buy your first home, new research from Yorkshire Building Society highlights just how significant homeownership could be over the longer term.
Its No way home? Restoring Britain’s housing ladder report found that, by retirement, homeowners are on average six times wealthier than renters – representing a wealth gap of around £793,000 in today's terms.
For today's 30 to 40-year-olds, its economic modelling suggests the gap between homeowners and renters could reach £1.6 million by retirement age if their current ownership status remained unchanged. Around 63% of that projected difference is directly associated with homeownership, through property wealth and lower housing costs compared with renting.
Those are pretty staggering figures.
But they also highlight a bigger issue: if homeownership can play such an important part in building longer-term financial security, how do we help more renters take that first step to becoming first-time buyers?
Why can homeownership make such a difference over time compared to renting?
Buying a home isn't a guaranteed route to becoming wealthier, and property values can fall as well as rise.
The Yorkshire Building Society figures also aren't saying that the entire wealth difference between renters and homeowners is caused by property.
Of the current £793,000 average gap at retirement, around £380,000 is attributed directly to property wealth, with the remainder reflecting differences in pensions, financial assets and other forms of wealth.
But there is an important structural difference between renting and owning.
With a repayment mortgage, monthly payments gradually reduce the amount owed and can build equity in the property. Over the longer term, homeowners may also benefit if their property increases in value.
Eventually, a homeowner may reach retirement having repaid their mortgage altogether, while somebody who continues renting is likely to retain an ongoing housing cost.
Yorkshire Building Society's research found that homeownership may be particularly significant for lower-income households, with lower-income homeowners expected to be seven to ten times wealthier than lower-income renters by retirement in its modelling.
Of course, everyone's financial circumstances and housing needs are different. But the research demonstrates why getting onto the property ladder can have implications that stretch far beyond simply buying your first home.
The trouble is getting onto the ladder in the first place
For many aspiring first-time buyers, wanting to buy isn't the problem.
Yorkshire Building Society found that 88% of UK adults believe homeownership is important, yet renters hoping to buy face some very practical barriers.
Among those the report describes as future homeowners:
48% said the high cost of living was holding them back
44% said homes were too expensive
31% said they didn't have enough savings for a deposit.
And separate research released by Lloyds Bank shows just how much some aspiring buyers are already sacrificing to try to overcome those barriers.
More than half (53%) of prospective first-time buyers surveyed said they'd delayed or given up important life milestones while trying to buy their first home. That included travelling, buying a car, getting married, and having children.
Almost two-thirds (64%) said they'd cut back on everyday spending while saving, including holidays, eating out and buying clothes.
If you're paying rent while trying to build a deposit at the same time, that probably won't come as a huge surprise.
But there was another finding in the Lloyds research that caught our attention.
Do you need as much deposit as you think?
More than a third (37%) of prospective first-time buyers surveyed by Lloyds believed that not having a 20% deposit would prevent someone from getting a mortgage.
It doesn't necessarily work that way.
Mortgage products exist at a range of loan-to-value levels, including options requiring considerably less than a 20% deposit. The amount you'll actually need will depend on factors such as the property, your income, affordability, credit history, and the mortgage products available at the time.
That matters when people are making significant sacrifices to save.
If you're aiming for a 20% deposit simply because you believe that's the amount you have to find, you could potentially be working towards a savings target that doesn't reflect the mortgage options available to you.
A smaller deposit can mean different rates, costs and lending criteria, so it isn't simply a case of “smaller is better”. But finding out what your realistic deposit target looks like can help you make a much more informed decision about when to buy.
Planning for your first-time buyer mortgage
Turn “one day” into an actual plan. This is where we think mortgage advice can be particularly useful for renters.
You don't need to wait until you've saved a particular amount or started viewing houses to find out what your options might look like.
At Delta Mortgages, we can help you understand:
how much you may be able to borrow;
what property price range could be realistic;
what deposit you may need;
how your income and existing commitments could affect affordability;
the other costs you'll need to budget for when buying;
what your potential monthly mortgage payments could look like; and
if you're not ready yet, what you could work towards.
You may find that you need another couple of years to save. You might decide that you'd prefer to build a larger deposit before buying. Or your circumstances might mean there are other things worth addressing first.
The important thing is that you're making those decisions using your actual circumstances rather than an assumed figure you've seen online or heard from somebody else.
Getting onto the ladder can be about more than owning a home
There are plenty of reasons people want to own their home that have nothing to do with investment returns.
Yorkshire Building Society's report found people valued homeownership for the stability and financial security it can provide, protection from rising rents, and having an asset for the future.
But its research also provides a striking reminder of the potential longer-term financial difference between renting and owning.
Homeownership won't be right or achievable for everybody, and nobody can predict what will happen to property prices over the next 30 or 40 years.
For those who do want to buy, though, understanding what it will realistically take to get onto the ladder is a good place to start.
Renting now and hoping to buy?
You don't have to wait until you're ready to put an offer on a property.
Speak to a Delta Mortgages adviser and we can help you understand what you may be able to borrow, what deposit you might need and the costs involved in buying your first home.
If you're ready now, we can help you explore your mortgage options.
And if you're not? We'll help you work out what you're aiming for.
Your home may be repossessed if you do not keep up repayments on your mortgage.
This article is for general information only and does not constitute personalised mortgage or financial advice. Your circumstances should be assessed individually before making any financial decisions.
Sources:
Yorkshire Building Society, No way home? Restoring Britain’s housing ladder (2026), research and economic analysis commissioned from Public First.
Lloyds Bank, Are first-time buyers ruling themselves out before they even apply? (20 August 2026), based on a survey of 1,051 adults in Great Britain planning to buy their first home within five years.
Author: Lauren Drake, Mortgage & Protection Adviser, October 2026
