Four fifths of first-time buyers move back with their parents to save for a deposit

A majority of recent first-time buyers have relied heavily on family support and personal sacrifice to get onto the housing ladder, according to research commissioned by TSB.

The survey found that four fifths (80%) had moved back in with parents to save towards a property, while 96% received financial help with their deposit – mostly from family and friends. The data showed that 68% receive help from family, and 57% from friends.

The everage deposit across the UK is 18.7%: London highest at 23%, and Wales lowest (13%). Almost two fifths (38%) said their new home was mostly what they wanted, but with a few compromises. Over a fifth (22%) said they had purchased their dream home. Almost one in 10 (9%) said they had made a major compromise and opted for affordability and location.

To get on the ladder, almost two fifths (38%) had delayed major purchases; limited socialising (37%) and took on a second job (37%).

On average, first time buyers saved for almost three (2.95) years; with those in Wales taking the longest to save up (3.39 years) and those in the East Midlands saving up the quickest (2.56 years).

On average, first-time buyers were paying £960 a month in rent prior to purchasing their home. As a result of buying their first home, 45 percent felt financially more secure. Almost two fifths (39%) felt relieved.

TSB data also shows that first time buyers are taking out 31-year terms on average – down from 32 in 2024. The average deposit size in the UK is 18.9 percent – with London the highest, at 23 percent, compared to Wales (13%).

Overall, the average age of first-time buyers is 32, up from 31 in 2024. The regions with the oldest first-time buyer age are London (34), the South East (33) and East Midlands (33). At the other end of the scale, Yorkshire & The Humber has the youngest average age, at 30.

Craig Calder, Director of Secured Lending, TSB, said “It’s clear that compromise is key to getting on the housing ladder in a preferred location – with most first-time buyers forgoing a dream home but feeling relieved, and more financially secure having made the move.

“Many made sacrifices to meet their deposit targets – such as moving in with parents, and taking a second job. To secure the best deal for your housing and affordability needs, do speak with a broker, or your bank.”