Insurance firm Aviva found that more than a quarter of families who rent have no savings while 80% do not have any life insurance.

Amongst homeowners, just 11% have no savings while almost half have some form of life cover. However, for people who own their home outright, the proportion with life cover falls to 25%.

Some 1.5 million renters have dependent children, a 19% annual rise, as more people are forced to remain in the rental sector rather than buying.

High house prices and poor supply were to blame in many cases, with 30% of renters unable to afford the deposit needed to buy a home.

Some 13% of all private renters said rents were too high, leaving them little money to save towards a house. In the social rental sector – where rents are typically cheaper – this figure fell to 6%.

Aviva said many families who rent were vulnerable to any form of financial shock, with little insurance or savings to protect them.

Louise Colley, managing director, protection at Aviva, said families trapped in the rental sector needed to protect themselves as best they can.

“Renters might not have a mortgage to pay, but they still have financial obligations like bills and monthly rent. Not having a savings cushion in place means unexpected costs could make day-to-day living a struggle, while a lack of income protection could be disastrous should they become ill and unable to work.

“Homeownership has always been a major ambition for British families and most renters would like to own their own home in the future. However, with rents at record highs, many are struggling to save enough for a house deposit.

“It’s easy to get stuck in a cycle of paying rent and bills and not prioritising saving, but even saving just a small amount each month will eventually add up. Government schemes such as the upcoming Help to Buy ISA can also help families to build on the amount they have saved themselves.”