How are First-Time Buyers Saving For a Deposit? has been the question recently asked.

Did the Covid-19 pandemic stop first-time buyers with an ambition to get a foot on the property ladder?

For many, the pandemic hit harder financially.

But an enforced cut back on spending was a positive outcome for those with home buying goals, allowing them to save faster for a deposit.

New research from the Nottingham Building Society asked how are First-Time Buyers Saving For a Deposit and found that:

  • Of those surveyed 19% plan to buy their first home in the next five years will have deposits saved this year.
  • 32% said they would be viewing properties this year.
  • Of the first-time buyers surveyed 8% have already started house hunting.
  • The survey also found that 28% of prospective first-time buyers expect to start viewing properties within the next three years.
  • 25% expect to view within the next five.

The remainder doesn’t yet know when they will be in a financial position to start viewing properties.

What does the end of Help to Buy mean for First-Time Buyers

Help with how to save

Those planning to buy their first home gave the top three financial sacrifices they have made to get into the position where this is a possibility.
  • Spending less on clothes
  • Spending less on eating out
  • Cutting back on holidays

Iain Kirkpatrick, Chief Customer Officer at The Nottingham, said:

“The restrictions placed on people during the height of the pandemic saw many dramatically cut back on the amount they spent – from eating out, to buying new clothes and holidays.

“Although it has been a very difficult time, for many of those saving for their first home the reduction in their expenditure provided an opportunity to dramatically increase their deposit savings and move a step closer to owning their own home.”

If you plan to buy your first home within the next five years, what steps are you taking to save for your deposit?