First-time buyers saving for deposits quicker

Michael Lloyd

November 11, 2019

tenancy deposit

First-time buyers are saving up for a deposit quicker, saving an average of 21% of their income per month Post Office Money has found.

The average of £843 a month varied across different regions of the country, ranging from £682 in Scotland to £1,046 in London.

Almost a third (29%) of first-time buyers managed to save up the full amount themselves, one in five (20%) used the help of a partner and 15% had a loan from the Bank of Mum and Dad to save for their deposit.

Ross Hunter, product director – retail banking, Post Office Money, said: “Our study shows that the first-time buyer saving journey is taking less time, often due to generous financial contributions from loved ones who help to speed up the process.

“However it’s clear that aspiring homeowners are still putting away large sums of money on a monthly basis and exploring an array of ways to bring in extra income.

“The journey to owning your first home can be stressful, especially for the 29% of first-time buyers who managed to save their deposit without help.”

A third (33%) admitted to working overtime to bring in extra money, whilst a quarter (25%) of first-time buyers sold items on auction sites such as eBay.

Almost a fifth (18%) of aspiring homeowners found a higher paying job, whilst 15% used credit cards to cover everyday expenses.

When calculating the amount needed to put down a deposit on their first home, almost half (48%) used property prices in their desired location to calculate how much they needed to save.

Almost a quarter (23%) said they took the advice of an IFA, with a further 10% claiming they asked a parent to estimate for them.

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