However, first-time buyers are missing out on government bonuses available through Lifetime ISAs and Help to Buy ISAs despite making major sacrifices to achieve their property dream, research from The Nottingham Building Society has found.
Around 61% said they have cut back on socialising, while 55% cut general spending on themselves and loved ones. Around 8% postponed starting a family or getting married while 7% sold their car and rely on public transport to maximise their savings.
According to the research, one in three saving to buy their first home in the next five years have not heard of the accounts that can boost their savings and less than half have taken advantage of a government scheme.
Savers aged 18 to 24 are the least likely to know about the financial benefits of ISAs that are available with 44% admitting they’re not aware.
First-time buyer challenges
HM Revenue & Customs figures showed 166,000 Lifetime ISAs (LISAs) worth £517m and averaging £3,144 per account were opened in the 2017/2018 tax year but hundreds of thousands are missing out.
The Nottingham’s chief operating officer, Simon Taylor, said that first-time buyers face a lot of challenges getting a deposit together, so it’s important to raise awareness of all the help and financial benefits that are on offer with the right accounts.
He added: “Our research shows people are making financial sacrifices to get on the ladder and they deserve some help. Thanks to the significant bonuses available, paying into a government-backed savings account, such as a Lifetime or Help-to-buy ISA, will enable first-time buyers to save a deposit more quickly or put down a larger deposit which can increase their options.
“The help isn’t just for first-time buyers either as the Lifetime ISAs can be used by savers wanting to boost their retirement savings also.”