Top Tips For Saving For Your First House

Buying your first house is an exciting milestone, but saving for it can seem daunting. With expensive property prices and the need for a substantial deposit, it’s crucial to have a solid plan in place.  

Disclaimer: This post is a collaboration

Average UK house prices sit at around £280,000, which is a sizeable investment that makes it challenging for first-time buyers to enter the market. However, with disciplined saving and strategic planning, achieving the dream of homeownership is within reach.

This article offers practical tips to help first-time buyers save effectively, ensuring you’re well-prepared to step onto the property ladder. 

Set clear financial goals

Start by determining your budget. Research house prices in your desired area and factor in additional costs such as legal fees and moving expenses. Setting a realistic budget gives you a clear target to aim for and helps you understand the full financial commitment involved. 

Once you have a budget, calculate the deposit required. Typically, you’ll need between 5% and 20% of the property price as a deposit.

Create a savings plan

A dedicated savings plan is essential for building your house deposit. Consider opening a high-interest savings account or an ISA specifically for your house deposit to keep your money separate and growing.

Automating your savings can also be highly effective. Set up a standing order to automatically transfer a fixed amount into your savings account each month, ensuring you consistently contribute towards your goal. 

Reduce expenses

It’s important to reduce your expenses. Use budgeting apps to monitor your outgoings and identify areas where you can cut back. This could include reducing non-essential spending on dining out, subscriptions and luxury items.

Take advantage of government schemes

The UK government offers several schemes designed to help first-time buyers. One scheme is the Help to Buy ISA, which provides a government bonus. Although this scheme is closed to new people, existing account holders can still benefit until November 2030. 

Another valuable tool is the Lifetime ISA, which allows you to save up to £4,000 per year with a 25% government bonus added annually.

Preparing for your first new house

If you’re considering buying a new build home, there are several advantages and specific steps to take. New build developments often come with lower maintenance costs and potential incentives from developers, such as help with legal fees or upgrades to your home.

Familiarise yourself with the process of purchasing a new build, including reservation fees, mortgage options, and the benefits of warranties and guarantees that come with a new build home. 

Saving for your first house requires discipline, planning, and taking advantage of available resources. Start today and take the first step towards securing your future on the property ladder.