First-time buyers are typically saving for a deposit in 3.6 years after putting aside £843 per month, research from Post Office Money has found.
It’s now taking first-time buyers less to save money for a deposit than it did last year, when they took 3.8 years to save a sufficient amount. Ross Hunter, product director, retail banking, at Post Office Money, said: “Our study shows that the FTB 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.”
A number of first-time buyers had assistance, as just 29% saved for a deposit without help. Some 20% used the help of a partner to save for their deposit, with others taking out a loan from the bank of mum and dad (15%) or using money from an inheritance (12%). A third (33%) worked overtime to bring in extra cash, while a quarter (25%) sold items on auction sites like eBay. Almost a fifth (18%) found a new higher paying job, while 15% used credit cards to cover everyday expenses.