Seven ways first-time homebuyers can boost their deposit savings by Christmas – Daily Record

Seven ways first-time homebuyers can boost their deposit savings by Christmas – Daily Record

House prices have continued to rise in the UK, with the average property value increasing by almost 9 per cent from April 2020 to April 2021.

The pandemic took a toll on the number of properties available as people looked to change their lifestyle or location in line with their spending habits. Working from home and hybrid working opportunities meant people have fewer geographical constraints than pre-pandemic, so rural properties and locations have become an option for many more people.

The average deposi t in the last 12 months has been 24 per cent, a figure that feels out of reach for many even after a long period of spending less money on eating out, events and clothing.

Even if millennials saved 20 per cent of their wage each month, it would still take an average of eight years and four months for one person to save enough for a house deposit.

Nick Lieb, Head of Operations at Share to Buy, said: “In stark contrast, saving to buy a Shared Ownership home can prove to be much more achievable for first-time buyers.”

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He explained: “For example, if a couple can put aside £400 a month, then they could save for a deposit in a third of the time needed for a deposit on the open market.”

Seven ways to boost your savings before Christmas

Track spending and set goals

Try keeping a list of debt and savings targets in your wallet to stay on track with a planned budget for the month. This is a good way to see how much you really spend on entertainment, travel and more.

Stick to a list

One of the simplest money-saving tips is to decide what to prioritise by creating a list before you go shopping. The trick is to stick to it to avoid impulse purchases like chocolate or clothes.

Prioritise spending

From health and beauty to takeaways and tech, prioritise spending habits from highest to lowest across each major category, and see where you can cut down. Try to spend money across just one of the categories each month.

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Create a waiting list

Help to reduce impulse spending and increase disposable income savings by creating a two-week waiting list for bigger purchases to see if they really are worth the spend.

Use technology

Finance apps can help you stay one step ahead of your finances by tracking how much you save and spend.

Recheck all your subscriptions

Stop wasting your disposable income through unused gym memberships, magazines, TV channels and more. Do an audit of every group or service you belong to and cut everything you no longer engage with.

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Set short-term goals

Alter your spending habits by creating specific goals you can work towards, like cutting your entertainment budget from £300 a month to £200.

If you’re looking to step onto the property ladder, use this mortgage comparison tool to discover what kind of mortgage you could afford to begin setting your goal.

Whether you fall into the average disposable income in the UK or not, any amount of savings is a good start.

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