Getting your foot on the property ladder can be a daunting thought for many first-time buyers, with increasing property prices making it hard to know where to start when it comes to saving.
According to new research from Halifax, house deposits are at an all-time high, rising by £10,000 over the last year. This can make saving a big task for many buyers.
Here are some top tips to help you get savvy with your savings:
Save a set amount each month
Instead of putting aside loose change found down the side of the sofa, try to consistently, and regularly, set aside money, ideally at the beginning of the month.
Also, saving your money in an account offering a rate that beats inflation will allow you to see your savings grow and avoid your money losing value over time. Putting your savings into a Help to Buy ISA or Lifetime ISA allows you to save your money tax-free and you could get a bonus of up to 25% on your savings when you buy your first property.
Try co-living to cut the cost of rent
If you live alone, renting can take a big portion of your monthly income. Considering moving in with friends or finding a house-share can cut the cost of rent whilst helping you save on utility bills. Co-living with family is another good way to save up more quickly, allowing you to put aside more money towards a deposit for your dream property. Alternatively, if you enjoy having your own space, you could consider moving to a cheaper area.
Get a helping hand from the government
The struggle for first-time buyers to get their foot on the property ladder is now widely recognised. Several Government schemes have been introduced to help buyers achieve their home-buying goals. Also, you may be eligible for a government grant or scheme which could help you reduce the cost of your deposit.
Cut down on unnecessary spending
We all like to treat ourselves from time to time but making small changes to your everyday outgoings such as cutting down on the daily cup of coffee you buy, can make a big difference when it comes to smart saving. Finding ways to cut back on such as making your own coffee in a flask, could save you more than you think.
If you’d like more information on saving for your first property, contact us from our website.