How people save for their first home as it could take five years

First time homebuyers in Britain are cutting down on pints to afford a new home, according to new research by UK mortgage advice company firstmortgage.co.uk.

Research shows people need to save a £26,000 deposit for their ideal first home – a two-bedroom property.

Top saving methods include cutting out close to 3000 litres of pub-bought beers and not going on holidays to afford it.

A third of first home buyers revealed they did not have a fixed amount they saved each month to put towards buying their first home.

But when asked what they were doing to achieve their savings goals, a third reduced their eating out habits, 32% saved by not going on their holiday and some even moved back in with their parents (18%).

If the average pint costs £5, then Brits need to skip 5,200 pints at the pub to afford an average deposit, whereas for an average city break of £350 for a few days, Brits need to forgo 74 holidays for a weekend on the couch.

First home buyer Sophie Parkin said: “We had to be tight with our savings, we had a spreadsheet of all of our incomings and outgoings. We had a savings target each month that we had to hit, and we packed lunches, cancelled social occasions, and got rid of subscriptions to be able to meet it.

“It’s worth it though now we are in our own home.”

The country’s super savers hail from Yorkshire (39%), Scotland (31%) and the South East (28%) who have saved in a year, while as a nation, it averages 3 years.

However, the nations’ slowest savers South West (41%), North East (36%) & London (25%) say that it would take them five years to put together a deposit.

First Mortgage spokesperson David McGrail said: “It might seem harder than ever to get on to the property ladder in a world full of economic uncertainty, however it is possible if you want it.

“Our advice to first home buyers in this climate is to take advantage. With overseas travel limited, government support through the reduction of stamp duty, and less socialising, it is prime time to get your finances in order and create a plan to get your dream home.”

TOP FIVE TIPS FROM FIRST MORTGAGE EXPERTS :

  • If you can, move back in with your parents and pay your usual rent into a savings account.
  • Plan ahead with meals and cook from home, forgoing a £20 meal out a week can save you over a grand
  • Cut back on holidays, look local to explore free and new places
  • Get your takeaway caffeine habit under control and pack a coffee from home instead
  • Be disciplined and set targets for weekly/monthly savings. Using products like Help to Buy ISAs and LISAs help you save quicker by earning bonuses from the Government.

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