How you can save for a house deposit quicker than you think

The average time it takes to save enough for a house deposit is three and a half years for a couple and 13 and a half years for a single person, according to estate agent, Hamptons International (1). How much you need to borrow will dictate how much you need to save, but on average you are looking at around £32,000 (2).

16th December 2019
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So, how can you speed things up and get on the property ladder sooner? Here are some ways you can save.

Go out less

Recent research by a national bar operator revealed that, on average, 26-30 year olds spend £66 on a night out, and that 40% of young drinkers go out at least once a week (3). That’s nearly £300 a month being spent. If you can abstain for a year, you’ll save on average approximately £3,000 (or if you’re a couple, £6,000).

Skip a holiday

According to Lloyds Bank (4) the average cost of going on holiday is now £1,400, so if you’re a couple then that’s another £2,800 saved.

Sell your car

Unless you need a car to get to work or live in the countryside, you could consider selling it, which could be another couple of thousand added to your savings. Even if you drive an old car and do just 10,000 miles a year, you’re likely to spend, on average, £168,000 running your car in a lifetime, which includes £45,000 on petrol (5).

Have a clear out

Unused or unwanted items all have a value – if you sell at a car boot sale or online you could be looking at hundreds of pounds to add to your pot.

Rent a smaller place

If you are renting at the moment, consider downsizing. For example, the difference in rent between a studio flat and a one-bedroom flat in London is £3,900 a year. Or you could move to a different, less expensive area (6).

If you would like to talk to us about saving or any other aspect of your financial planning, please get in touch with us on 01934 875919.

  6. Rightmove London rental data 2017

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