The first-time buyer’s guide to saving for a property deposit

Buying your first home is a major milestone and a significant accomplishment. However, saving for that all-important property deposit can be challenging, especially when balancing a high cost of living while trying to set aside money each month.

Of course, such difficulties have always existed, but young adults today face increasingly higher barriers to entry into the property market.

Data from the Office for National Statistics (ONS) shows the average age of a first-time buyer in the UK is 36, up from 32 in 2004. Over those years, property prices have risen faster relative to real wages. Research from Schroders reveals that the last time house prices were as expensive relative to average earnings was in 1876. Moreover, younger Brits face other financial obstacles, such as student loan repayments.

If you are saving for a property deposit, this guide will walk you through all the available options and the steps you can take to help you buy your first home.

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The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.

Think carefully before securing other debts against your home.

Equity Release will reduce the value of your estate and can affect your eligibility for means-tested benefits.

A lifetime mortgage is a loan secured against your home. To understand the features and risks, ask for a personalised illustration. Equity release will reduce the value of your estate and may affect your entitlement to means tested benefits. Your home may be repossessed if you do not keep up repayments on your mortgage.

The Financial Conduct Authority does not regulate taxation advice and National Savings products deposit accounts.

Foster Denovo Private Wealth is a trading name of Foster Denovo Limited, which is authorised and regulated by the Financial Conduct Authority.