How to save for a house deposit

Author - Helen Lovell Editor - Stuart Bowman

Last reviewed on 7th July 2025

20 ways to save for a house deposit

We’re sharing a range of strategies that could help you supercharge your savings. While not every tip may suit your lifestyle, implementing even a few could make a difference in building up your deposit as a first-time buyer.

Reduce your outgoings 

1. Set a budget

As a first step, you need to understand where your money goes. Create a detailed budget either using an old-school spreadsheet or a budgeting app. This should help you clearly see your income, essential expenses (like rent, bills and groceries), and non-essential spending (such as entertainment and shopping). 

You’ll then be able to identify how much you can realistically save each month and pinpoint areas where you might be overspending. Those regular takeaways? They could be unexpectedly costing you hundreds each year. 

2. Live with friends and family

Explore options like moving in with friends or family, finding a flatshare or even downsizing. This can drastically reduce your monthly outgoings, particularly on rent and utility bills. Of course, switching up your living arrangements can be stressful, so make sure you choose a move that works for both your savings goals and your lifestyle. 

3. Compare deals to reduce your bills

Regularly reviewing your essential bills is a simple yet effective way to save. When your contracts for broadband, utilities or insurance are up for renewal, always compare deals from different providers. 

It’s also a good idea to think about what services and add-ons you really need. For example, if your mobile phone is in good working order, you could switch to a SIM-only deal and save an average of £321 per year (according to Uswitch). 

4. Cut out subscriptions

UK consumers spend £688 million each year on subscriptions we don’t use, such as magazine subscriptions, fitness apps or streaming services. Reviewing and cancelling those you don't need can free up a surprising amount of cash each month that can go straight into your deposit fund.

5. Cut your living costs

Think about savvy ways to save, such as swapping branded groceries for more affordable own-brand alternatives. Set yourself some other cost-saving challenges, too, such as buying second-hand clothing rather than brand-new designer gear, or inviting friends for a movie marathon at home rather than a meal out. 

6. Avoid the commute

Did you know that you could save over £1,000 a year by working from home? Research suggests that the average full-time office worker spends £95.48 per week commuting to the office and eating out during their lunch break compared to just £76.12 for those who work a hybrid role. So, if you have the option of working from home for just a few days per week, this could help your deposit grow much quicker.

7. Pay down your debt

Prioritise paying down high-interest debt to help you boost your savings potential. Not only will you save money on interest, but a lower debt-to-income ratio can also improve your mortgage affordability when you're ready to buy.

Boost your income 

8. Sell what you don’t need

You’d be surprised how much you could earn by selling old or forgotten items. Research by VoucherCodes found that the average person could make an impressive £1,315 from selling unused or unwanted items. Platforms like eBay, Vinted and local selling groups make it even more straightforward to turn items into cash for your deposit.

9. Negotiate your salary

Talking about money isn’t always comfortable. But asking for a pay rise is a direct way to increase your income and accelerate your savings. Research industry benchmarks for your role and come prepared with a portfolio of recent achievements to help you convince your manager it’s time for a pay bump. 

10. Buy with someone else 

Pooling resources with a friend, family member or partner can significantly increase your combined savings and potentially allow you to afford a more expensive property. Getting a joint mortgage is probably one of the biggest financial decisions you can make, though, so think carefully about the legal and financial implications before going ahead. 

11. Switch your bank account

Many banks frequently offer cash bonuses of £100-£200 (or sometimes even more) to entice new customers to switch their current accounts. So you may be able to make hundreds if not thousands of pounds just from switching accounts repeatedly over a few years, as long as you meet each bank’s specific eligibility requirements. 

Each switch could have a small impact on your credit score, though, so avoid frequent switching in the six months leading up to your mortgage application. 

12. Start a side hustle

Whether you’re a keen photographer, crocheter or even dog walker, there are loads of ways you can turn your talents into cash. Build your personal brand on social media sites like TikTok and LinkedIn, search for freelance opportunities on job sites like Fiverr or Upwork, or look to sell your crafts on platforms like Etsy. 

13. Use cashback websites

There may be times during your savings mission where you want or need to make a purchase. But, whatever you buy, make sure to check if the retailer you’re using is listed on a cashback website such as TopCashback or Quidco. These platforms offer a percentage of your spending back when you shop through their links.

Over time, the savings can be substantial. TopCashback states that their average user earns over £300 per year in cashback on their regular online purchases.

Get help with your deposit 

14. Call upon the bank of Mum and Dad

Cash gifts from parents or other family members can make a huge difference to the size of your deposit. On average, parents gift an average of £58,129 to help their children get on the property ladder. It’s worth discussing your home ownership goals with your loved ones, as they may be keen to help. 

15. Consider family assist or guarantor mortgage options 

If your family would like to help you but aren’t in a position to top up your deposit, you may be able to explore mortgage products that involve family support. This includes family-assisted mortgages or guarantor mortgages. It’s worth discussing these options with a mortgage broker to ensure all parties understand the responsibilities and risks involved. 

16. Make the most of home ownership schemes 

There are some schemes available to assist eligible first-time buyers in purchasing their first property:

• First Homes Scheme: This gives first-time buyers the chance to own a new build property at a 30-50% cheaper rate than its initial market price.

• Shared Ownership Scheme: This allows first-time buyers to purchase a share of a property (between 25-75%) and pay rent on the remaining portion. Due to this, a first-time buyer often needs a much smaller deposit to get onto the property ladder.

• Right to Buy: This government scheme enables council tenants to buy their rented homes at a discounted price. 

• Rent to Buy: Eligible tenants are able to rent their home at a discounted price, giving them greater opportunity to save money for a deposit.  

• Deposit Unlock: Allows eligible applicants to purchase a new-build home with a 5% deposit. 

Maximise your savings 

17. Open a Lifetime ISA to receive up to £1,000 a year

A Lifetime Individual Savings Account (LISA) is a tax-free savings account in the UK that allows those aged 18-39 to save up to £4,000 per year towards their first home or retirement. The government provides a 25% bonus on the amount saved each year, up to a maximum of £1,000 annually. Make sure you read up on the rules around eligibility and withdrawing the money before going ahead. 

18. Find the best savings account for you 

Where you keep your savings matters. While instant access accounts offer flexibility, fixed-rate savings accounts might provide higher interest rates in return for locking your money away for a set period. Consider your timeline for buying a house when choosing which type of savings account is your best option. 

19. Save consistently

Make saving a habit, not an afterthought. Set up a regular standing order from your current account to your savings account for a fixed amount each payday and you’ll soon see your deposit fund grow. You could also consider setting up an ‘autosaving’ app like Plum that analyses and organises your savings for you. 

20. Take advantage of tech

Many modern banking apps offer features designed to help you save, such as rounding up your card transactions and automatically saving the spare change, or providing cash rewards on certain spending. Explore the features of your banking app to see how they can support your savings goals.