You are here: Home - Mortgages - First Time Buyer - News -

First-time buyer deposits boomed during pandemic

Written by: Anna Sagar
The Covid-19 pandemic has allowed first-time buyers to save up a deposit faster due to reduced spending on areas like clothes, eating out and holidays.

A fifth of first-time buyers who planned to get on the property ladder in the next five years have managed to save a deposit this year.

When asked where the biggest savings were made, 60% said they spent less on clothes, 56% cut back on eating out and 51% didn’t go on holiday.

Other areas of saving included reduced spend on big food shops at 43% while 16% polled said they had taken on an extra job, according to the research by The Nottingham.

Around a third of the 1,023 adults surveyed said they planned to view properties this year and 8% of first-time buyers said they had started househunting.

Over a quarter (28%) said they expected to start viewing properties in the next two or three years and a quarter said they expected to look at properties in the next three to five years. The rest said they were unsure when they would start viewing.

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.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

Low-income pensioner? You could gain £3k top-up

Hundreds of thousands of retirees struggling with a low income are missing out on Pension Credit worth £3,300...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week