Homegrown deposits: Why moving back in with parents might be the only way on to the property ladder

With over a quarter of a million buying their first property in 2017, Which? Mortgage Advisers reveals the lengths people are going to in order to raise enough for a deposit.

New research from Which? Mortgage Advisers reveals that one in five (22%) first time buyers who saved each month for a deposit moved back in with or continued living with parents, showing the drastic measures that people are taking in order to take their first step on the property ladder.

Nearly four in 10 (37%) who were saving each month towards a deposit worked overtime, and one in five (19%) went as far as selling their personal belongings to help raise more funds. The Which? research shows that six in 10 (62%) first time buyers set aside money every month to save for a deposit on their first home. This insight comes as statistics from the Institute for Fiscal Studies show that home ownership among young people has fallen significantly in the past two decades.

Despite the high levels of commitment to saving, first time buyers continue to rely on money from other sources, with a recent report indicating that the ‘bank of mum and dad’ was expected to lend approximately £6.5 billion in 2017. Which? Mortgage Advisers found that a third (31%) of first time buyers used money that they had inherited to support their deposit and three in 10 (29%) received a contribution from a friend, family member or someone else.

Almost half (46%) of first time buyers had a maximum deposit of 10%, but with property prices continuing to rise throughout the country, even this amount is out of reach for many. The average property price in the UK is £234,794, which means to have a deposit of just 10 per cent requires savings of over £23,000, without factoring in the additional costs of buying a property.


Advice for saving for a deposit:

  • Set up a Help to Buy ISA – You can save £200 a month and when you come to buy, the Government will give you a 25% top-up on savings of up to £12,000.
  • Budget – Create an effective household budget plan to maximise your savings.
  • 50 ways to save money – Take advice from Which? on how to save money in your everyday life.

For advice on how much deposit you’ll need and a deposit affordability calculator, visit: www.which.co.uk/deposit


David Blake, Principal Mortgage Adviser, Which? Mortgage Advisers, said:

“For many, the prospect of saving a deposit for a first home can be daunting, unrealistic and even downright depressing.

“However, there are various options out there for first time buyers, from Help to Buy ISAs to equity loans, and even shared ownership. Consider speaking to an independent expert who can offer advice tailored specifically for you.”


Notes to editors

  • Which? Mortgage Advisers surveyed over 2000 people, including 713 first time buyers, as part of its annual home buyers survey in December 2017. The study focused on the experiences of those who had purchased a property in the previous two years.
  • Which? Mortgage Advisers is one of the Which? commercial services. When an important market fails to deliver value for customers, we develop products and services that put customers’ needs first. Which? Mortgage Advisers provides truly independent, whole-of-market mortgage advice. You can find out more by visiting https://mortgageadvisers.which.co.uk
  • A report by Legal and General indicated that the ‘bank of mum and dad’ would lend £6.5 billion in 2017.
  • The Institute for Fiscal Studies recently released figures showing that the biggest decline in home ownership in the last 20 years has been among middle-income 25 to 34-year-olds. In 1995-96, 65% of this group owned a home, but just 27% do in 2015-16, with the biggest drop in south-east England.
  • According the UK Finance there were 365,000 first-time buyers in the UK in 2017.

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