For many first-time buyers, getting on the property ladder may be a daunting prospect, and despite Help to Buy allowing buyers to put down a 5% deposit, many are still struggling to save the average down payment on a home.
With house deposits at an all-time high, it’s not surprising that many people find it difficult to set aside money for a deposit
If you want to get your foot on the property ladder, here are some savvy tips to help you save your deposit:
Save consistently and regularly
Setting aside a specific amount of money at the beginning of the month is a great way to see your savings grow. If you set up a standing order for a couple of days after your payday, you can ensure that money is being put into a savings account or ISA every month, without having to think about it.
Put goals in your diary
If your goal is to save £5,000 by the new year, writing down a plan for how you aim to achieve this plan is a good way to ensure you can save your deposit. Make sure you break it down into manageable bits to make your goals more obtainable, and once you have saved the first £500, you are much more likely to stick to your savings plan.
Curb unnecessary spending
How often do you eat out every month? Or get a coffee from a coffee shop? We all like to treat ourselves every now and again but making small changes to your everyday outgoings can make a big difference when it comes to saving for your deposit.
Consider your current living situation
Renting might eat up a significant chunk of your monthly income, especially if you live alone. Moving in with friends or finding a house share can help you save money on rent while also saving on utility bills. Co-living with family is another quick saving strategy, allowing you to save for your dream home. Alternatively, if you value your own space, you could consider moving to a cheaper area.