First-time buyers need almost a decade to save for a deposit

The average first-time buyer in England purchasing alone needs nine years and five months to accumulate a 10% deposit and cover upfront costs, according to research by homemover comparison site reallymoving.

Based on the current average first time buyer purchase price of £250,000, a buyer saving 10% of their take-home pay each month would need 113 months to amass £27,315 — comprising a £25,000 deposit, £1,421 for conveyancing, £462 for a survey, and £432 for removals.

Those able to purchase jointly — with a partner, friend or sibling — can halve that timeline to 56 months (four years and eight months), based on both buyers earning the national average wage.

Buyers who use a Lifetime ISA (LISA) can shorten the saving period by almost two years. The government-backed scheme allows buyers aged 18 to 39 to save up to £4,000 per year and receive a 25% bonus on contributions. A couple both saving into a LISA could reach their target in four years and nine months. The government has announced plans to replace the LISA with a new First Time Buyer ISA in 2028, with no upper age limit.

Buyers in London face the most prolonged saving journey, requiring approximately 13 years to accumulate the £47,692 needed to purchase a first home in the capital. By comparison, buyers in the North East need around six years and seven months to raise £16,763 — roughly half the time. On average, first-time buyers in the South of England require 40 months longer to reach their target than those in the North.

Data from reallymoving also shows that more than half (53%) of first-time buyers purchased a three-bedroom property or larger in the past year. The research notes that the average age of first time buyers has risen to 34, with larger household needs and a preference for reducing the number of future moves both cited as factors.

"Raising a deposit and covering the cost of moving is still the biggest challenge facing most first-time buyers who don't have access to financial support from parents and grandparents," said Rob Houghton, founder and chief executive officer at reallymoving. "

"With the cost of living and rents so high, putting money aside month after month is increasingly difficult and even first-time buyers who save consistently are looking at almost a decade of saving until they can afford to get on the housing ladder.

"The announcement that a new First Time Buyer ISA will be launching in 2028 with no upper age limit is certainly positive, better reflecting the increasing age of first-time buyers and their desire to purchase larger homes at the outset, but it's essential that the £450,000 price cap is also reviewed to ensure it better reflects property values in London and the South East."

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