Those saving a deposit are in an even worse position as rising rents are reducing the amount they can save each month.
It now cost more to rent than it does to pay a mortgage in 94% of Britain's largest towns and cities.
Data from property site zoopla.co.uk shows that the cost difference between paying rent and paying for a mortgage has risen by 50% in the last 12 months.
Those that have a 15% deposit would now be about 10% a month better off than those that rent.
Top 10 comparision Renting to Buying (Source Zoopla)Average monthly rent 2-bed flats against Average asking price 2-bed flats. (based on 85% mortgage @5% apr)
PRICE Rent or Buy CITY RENT TO BUY DIFFERENCE BEST1 Milton Keynes £756 £133,217 36% BUY
2 Warrington £601 £108,604 33% BUY
3 Walsall £507 £92,031 32% BUY
4 Coventry £582 £105,850 32% BUY
5 Northampton £587 £106,925 32% BUY
6 York £866 £158,127 31% BUY
7 London £2,416 £442,036 31% BUY
8 Wolverhampton £505 £92,590 31% BUY
9 Swindon £597 £110,574 30% BUY
10 Birmingham £706 £130,937 29% BUY
Higher rents and lower mortgage rates are believed to have attracted landlords back into the buy-to-let market, keeping property prices high making it harder for first time buyers.
Pricedout.org.uk has lobbied the government to introduce higher taxation on landlords and special initiatives to help those saving a deposit to get a decent return on their savings.
