Buying your first home is one of the biggest milestones in life—but with rising house prices and strict lending rules, it can feel overwhelming. The good news? With the right plan, saving for your first home in the UK is completely achievable.
In this guide, we’ll walk you through practical steps to save for a deposit, take advantage of government schemes, and finally get the keys to your new home.
Step 1: Set a Clear Savings Goal
Start by researching average house prices in your area. In the UK, first-time buyers typically need at least a 5–10% deposit. For example, a £200,000 home would require a deposit between £10,000 and £20,000.
Step 2: Open a Lifetime ISA (LISA)
If you’re aged 18–39, you can open a Lifetime ISA and save up to £4,000 a year. The government adds a 25% bonus (up to £1,000 per year)—free money toward your first home.
Step 3: Automate Your Savings
Set up a standing order that moves money into your savings account each payday. Consistency is key to building your deposit faster.
Step 4: Cut Back on Discretionary Spending
Small sacrifices now can speed up your home purchase. Track subscriptions, eating out, and impulse shopping—it all adds up.
Step 5: Explore Help-to-Buy Alternatives
While the official Help to Buy scheme ended, shared ownership and First Homes schemes are still available. These reduce the deposit required and make home ownership more accessible.
Step 6: Increase Your Income
Side hustles, freelancing, or part-time work can accelerate your savings. Every extra pound you earn brings you closer to your first home.
Step 7: Use Our Free Savings Goal Calculator
Wondering how long it will take you to save your deposit? Try our Savings Goal Calculator to get a clear timeline.
Final Thoughts
Saving for your first home in the UK may feel daunting, but with the right tools, government support, and a consistent plan, it’s achievable. Start small, stay consistent, and your dream of owning a home will become a reality sooner than you think.
