Buying a home is not just about having a place to live — it can also be a smart long-term financial investment. New research shows that homeownership can deliver substantial savings compared to renting, making it an important consideration for those planning their financial future.
Buying vs Renting – The Long-Term Outlook
Although the upfront costs of purchasing a property can seem steep, homeowners often see benefits sooner than expected. By the second year, buyers could save an average of £99 per year compared to renters. Over time, these savings grow significantly: after ten years, the wealth gap could reach £12,157, and after 30 years, potential savings could exceed £206,000. For those who invest their savings wisely, the returns could be even greater.
Regional differences are also striking. Renters in London could miss out on up to £540,687 over 30 years, while in Bristol, long-term savings might reach £573,110.
Challenges for First-Time Buyers
Despite these clear financial advantages, many renters still feel that buying a home is out of reach. While 65% aspire to own a property and 64% acknowledge the long-term security it offers, 27% do not believe homeownership is attainable. High property prices remain the biggest barrier (61% of renters), followed by saving for a deposit (56%) and income instability (32%). Only a small minority, 8%, prefer the flexibility of renting.
Optimism Among Younger Generations
Younger renters are more hopeful about entering the property market. Only 11% of 25–34-year-olds see homeownership as unattainable, dropping to 7% among 18–24-year-olds. Additionally, over half of tenants (56%) would buy if mortgage payments were comparable to their current rent — a scenario increasingly possible in certain parts of the UK.
Conclusion
Owning a home provides not only a place to call your own but also a powerful tool for long-term wealth creation. While challenges like saving for a deposit and rising property prices remain, the long-term financial benefits of buying can far outweigh the costs of renting, especially for those planning for the decades ahead.
🚨 Data accurate as of the date of publication
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, mortgage, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Services – Essentially Mortgages Q4 2025
