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.
According to research from The Nottingham, which surveyed 1,023 adults, 19 per cent of respondents planning to buy their first home in the next five years will have deposits saved this year.
When asked where the biggest savings were made, 60 per cent said they spent less on clothes, 56 per cent cut back on eating out and 51 per cent didn’t go on holiday.
Other areas of saving included reduced spend on big food shops at 43 per cent, and 16 per cent said that they had taken on more than one job.
Around a third, 32 per cent, said they planned to view properties this year and eight per cent of first-time buyers said they had started househuntinng.
Over a quarter, 28 per cent, said they expected to start viewing in properties in next two or three years and quarter said they expected to look at properties in the three or 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.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
