With the average property in the UK costing £206,145 and deposits as a proportion of the purchase price averaging at 17%, more and more people are struggling to take their first steps onto the property ladder.
Online estate agent Urban.co.uk has calculated that it will take first-time buyers on an average UK salary more than 12 years to save for a deposit on a home.
By making sacrifices and giving up certain luxuries, Brits could generate a huge saving of over £12,000 each year, which they could put towards a deposit.
Here are six tips to help first time-buyers speed up the savings process:
Cash in on your cappuccino
With the average UK worker spending a substantial £608 per year on daily take-away coffee, it seems that a coffee cutback could speed up the process. If Brits were to brew their own, this money could go towards their dream home, rather than milky foam!
Potential annual saving: £600
Set menu savings
Brits have developed a taste for meals out, chomping their way through £4,100 worth of restaurant meals per year. Cutting back on this luxury could help keep waistlines trim and bank balances bulging, as well as contributing towards that all-important deposit.
Potential annual saving: £4,100
Box-set bargain
Whilst staying in could be considered a cheaper option than going out, research reveals that it can be just as expensive to have a night in on the sofa. A TV, phone and Internet package can cost the average household £592 on Sky, £71 on Netflix, £120 for Spotify and £79 for Amazon Prime each year – and that’s without a TV license.
Potential annual saving: £863
Budget-busting beach breaks
Saving for a deposit can be hard work, which is why many Brits treat themselves to some well-deserved rest and relaxation on holiday. However, with the average family spending a hefty £2,300 on a sunny summer break, other cheaper means of relaxation could be considered.
Potential annual saving: £2,330
Work-out your finances
It comes as no surprise that one of the UK’s favourite ways to splash the cash is on gym membership. With thousands of gyms in the UK offering weighty monthly packages, first time buyers could be looking at spending up to £1,100 per year on keeping fit.
Potential annual saving: £1,100
Rev up your revenue
There’s no doubt that a car is a necessity for many, however, if it is not used very often a vehicle could be costing over £3,450 a year, when taking fuel, insurance, tax and maintenance into account. By considering carpool schemes, Brits could save in the region of £3,000 per annum.
Potential annual saving: £3,450
Adam Male, co-founder of Urban.co.uk, said: “We don’t realise how much the little things add up, but it is clear to see that the things we take for granted in our day-to-day lives are really putting the brakes on our ability to save for our dream homes.
“If people are able to make small changes to their everyday routines, they will soon see the savings build up, and in no time at all there will be a comfortable amount ready to be invested in bricks and mortar.”
