First-Time Buyers Face 9-Year Savings Slog, Research Reveals

The Deposit Challenge: A Nine-Year Wait for First-Time Buyers

Solo first-time buyers in England face an arduous saving timeline of 113 months – nearly nine and a half years – to accumulate the funds needed to purchase their first property, according to new research from Reallymoving. The analysis, based on 40,454 conveyancing quote forms submitted between June 2025 and June 2026, paints a stark picture of the financial barriers confronting those entering the market without parental support.

The figure of £27,315 encompasses more than just a deposit. It includes a 10% down payment on the average first-time buyer property price of £250,000 (£25,000), combined with average conveyancing costs of £1,421, survey fees of £462, and removal expenses of £432. The calculation assumes buyers can consistently set aside 10% of their monthly take-home pay, based on ONS earnings data after accounting for tax, national insurance, and pension contributions.

Rob Houghton, founder and chief executive of Reallymoving, emphasised the severity of the challenge: "Raising a deposit and covering the cost of moving is still the biggest challenge facing most first-time buyers who don't have access to financial support from parents and grandparents. With the cost of living and rents so high, putting money aside month after month is increasingly difficult."

The North-South Divide: Regional Disparities Widen

The research reveals a substantial geographic divide in first-time buyer affordability. Buyers in London face the most daunting timeline, requiring 13 years of consistent saving to accumulate the £47,692 needed to secure a property. In stark contrast, those in the North East need only six years and seven months to raise £16,763 – less than half the time required in the capital.

Across regions, the South of England presents a notably harder challenge than the North, with buyers needing an additional three years and four months of savings on average. This disparity underscores the persistent property price and earnings gap between regions, creating vastly different entry points to homeownership depending on location.

For investors monitoring regional market trends and first-time buyer activity, these variations highlight where demand pressures are most acute. Understanding these regional dynamics can help inform investment strategy decisions. Tools like planning alert systems and regional hotspot analysis can provide valuable insight into emerging first-time buyer markets.

Lifetime ISA: A Significant but Insufficient Boost

Whilst government-backed savings vehicles offer some relief, they cannot bridge the gap entirely. Those eligible to use a Lifetime ISA (LISA) – available to savers aged 18 to 39 – can reduce their saving timeline by 23 months to approximately seven and a half years. The LISA allows contributions of up to £4,000 annually and includes a 25% government bonus, making it the primary tax-advantaged route for first-time buyers currently.

The government has announced plans to introduce a new First Time Buyer ISA in 2028, which will remove the upper age limit – potentially benefiting older first-time buyers currently excluded from LISA eligibility. However, Reallymoving has called for a review of the proposed £450,000 property price cap on the new scheme, arguing it does not adequately reflect property values in London and the South East where affordability challenges are most pronounced.

Changing First-Time Buyer Demographics

The research also reveals shifting patterns in first-time buyer behaviour. More than half (53%) of first-time buyers purchased three-bedroom properties or larger during the past year. Reallymoving attributes this trend to the rising average age of first-time buyers – now 34 – and changing housing requirements, potentially reflecting desires for home offices, family space, or future family planning.

This demographic shift has implications for the types of properties entering first-time buyer chains and broader market dynamics. Investors seeking to understand evolving demand patterns and identify below-market-value opportunities in growth areas may find this shift particularly relevant to their strategy.

The overall picture remains challenging: first-time buyers must navigate extended savings periods, regional affordability barriers, and upfront costs that extend far beyond the headline deposit requirement. Until systemic barriers to affordability are addressed, government incentives, whilst welcome, will continue to offer only partial solutions to the fundamental savings challenge facing those seeking to enter homeownership.

Source: Property Industry Eye.