Overcoming the challenges of saving for a deposit when renting: How the ST Rent to Own Mortgage Helps Local Renters
At Hanley Economic Building Society, we understand the growing difficulties that local renters in Staffordshire face when it comes to securing homeownership. With rising rents and the challenge of saving for a large deposit, many individuals and families are finding it harder to take that first step onto the property ladder. That’s where our Rent to Own mortgage comes in - a solution designed to make homeownership more accessible to those who need it most.
The Growing Gap Between Rent and Mortgage Payments
Recent research by Zoopla has highlighted a striking trend: mortgage repayments are now, on average, 20% cheaper than monthly rent. This shift has been significant - just a year and a half ago, renters were paying only 2% more than first-time buyers in monthly housing costs. Today, the typical mortgage payment for a first-time buyer is £1,038 a month, compared to £1,248 for rent. Zoopla
For renters in Staffordshire, where affordability has become an increasing concern, this widening gap between rental costs and mortgage repayments is good news. However, the reality for many is that saving for a large deposit to purchase a home remains a major barrier. This is where our Rent to Own mortgage can help.
Why the Rent to Own Mortgage Matters for Staffordshire
As Zoopla’s research reveals, there are some areas in the UK, such as the East of England, where renting is still slightly cheaper than buying a home. However, in many regions, including Staffordshire, owning a home via a Rent to Own mortgage is more affordable than renting. Zoopla
The Rent to Own mortgage helps renters in the ST postcode area transition to homeownership without the need for a significant upfront deposit. By using rental history as part of the mortgage application, renters can secure a home and start building equity, instead of just paying rent each month.
The Challenges of Saving for a Deposit
In Staffordshire, rental prices are still high, which makes saving for a deposit difficult. According to recent data, the average monthly rent for properties in Stafford was £825 in January 2025. This can make it challenging for renters to save enough for a deposit, particularly as many renters are already paying a significant portion of their income towards rent. In fact, recent statistics show that rent prices in South Staffordshire range from £424 for a single room to £1,206 for a house with four or more bedrooms.
Although there have been recent rate decreases, the large upfront deposit is still a major barrier for local renters. Many renters struggle to save enough while paying high rent prices.
How Our Rent to Own Mortgage Can Help
Our Rent to Own mortgage is designed to make the transition to homeownership easier for renters. It requires no deposit, and renters only need to provide proof of 12 months of rental history to apply. This makes it much easier for renters to step onto the property ladder, without the huge barrier of saving for a traditional deposit.
If you're interested in learning more about our Rent to Own mortgage and how it can help you make homeownership a reality, click here to find out more.
