The solo homebuyer’s timeline: How saving for a deposit differs across the UK

Key findings for solo homebuyers:

Our in-depth analysis has uncovered that:

• On average, a UK solo buyer needs 7 years and 3 months to save for a 15% deposit, assuming they can set aside two-thirds of their disposable income.

• There are clear regional differences - in Northern Ireland, it takes just 3 years and 11 months to save for a deposit, whereas, in the East of England, it stretches to a staggering 13 years and 6 months.

• Those that flatshare spend an average of £958 per month on rent and household bills, which can make it increasingly difficult to save for a deposit.

But here’s the exciting part: despite these challenges, solo homeownership is on the rise! We’ve witnessed a 60% increase in solo first-time buyers in 2023, and that trend is growing evermore in 2024.

So whilst the road may seem long, solo homeownership is not out of reach. With careful planning and a can-do attitude, more people are making it happen - and you can too!

How much renting costs in 2024 

Before you buy a property, you need to save a deposit. However, renting costs across the UK vary significantly. So, using SpareRoom's average rent statistics and our research on how household bills can differ across UK regions, we've calculated the total cost of renting in 2024.

Here's a breakdown of the average monthly renting expenses across the UK when sharing with one other person:

*Other household bills include council tax, water, gas, electricity, entertainment, and insurance. Whilst the majority of these bills aren’t impacted by your location, the average council tax can differ depending on your county.  

How renting and household bills differ across the UK in 2024

In London, it's no surprise that renting is the most expensive. The average cost of renting a room here is £995 per month, and when you add household bills, the total can reach nearly £1,300.

The South East isn’t far behind, with renting costs creeping over the £1,000 mark. Here, the average rent for a room is about £741. 

On the brighter side, Northern Ireland and Yorkshire offer some relief. Renters here enjoy lower costs, averaging £831 and £848 respectively. If you’re in these regions, you might find it a bit easier to manage your budget.

The average rent in the UK  

So, what does this mean for the average person? Well, across the UK, renting costs about £958 per month. This breaks down to around £660 for renting a room and approximately £298 for essential bills like council tax, utilities, and insurance. Knowing these averages can help you feel more connected to others who share similar financial concerns.

For those dreaming of homeownership, these figures can seem daunting. But remember: with careful budgeting and planning, your dream can become a reality—regardless of where you choose to buy your first home alone.

Additional monthly costs beyond household bills 

However, it’s not just rent and household bills that aspiring first-time buyers have to fork out for every month - there are the additional costs that come with everyday living. 

That’s why we’ve used Nimblefins' data on the average UK household budget and adjusted it for those that rent by dividing their household  costs by 2.3 to reflect what someone needs to pay when going it alone:

Our research shows that the average person faces an extra extra £790 in monthly expenses beyond typical household bills. This figure includes other essential costs such as public transport, food shopping, and recreation. 

While effective budgeting is key when saving for a deposit, it’s equally important to enjoy life as you work towards saving for your deposit. Finding a balance is key—allow yourself some flexibility in your budget to engage in activities that bring you joy and fulfilment.

Region-by-region: How much aspiring solo buyers can save per month

Now that we've explored rental costs and other living expenses across the UK, let's look at how much renters might be able to save towards a house deposit. We've combined these figures to calculate the ‘total outgoings’ for renters in each region, giving us a clearer picture of potential savings.

It's important to note that while we've calculated the full disposable income, we recommend setting aside only two-thirds of this amount for savings. This approach leaves room for unexpected costs and maintains some financial flexibility:

*⅔ of disposable income 

Our research shows that despite having the highest living costs, London renters potentially have the highest monthly savings at around £588, reflecting the higher salaries that come with living in the capital. 

Renters in the East Midlands have the second-highest disposable income total. By putting away two-thirds of it, aspiring solo first-time buyers have the potential to save approximately £482 per month. 

On the flip side, those who live in the East of England or the North East have the lowest savings potential for a deposit, averaging £285 and £348 per month.

Across the UK, the average monthly post-tax salary stands at £2,391, with total outgoings averaging £1,748. This leaves an average disposable income of £643, however, a more realistic savings potential of £424 per month on the basis that they save two-thirds of it. 

However, while these figures provide a useful benchmark, it's essential to remember that everyone's financial situation is unique. Factors like individual lifestyle choices, unexpected expenses, and personal financial goals all play a role in determining how much you can realistically save each month.

The key is to create a balanced approach to saving – one that allows you to work towards your homeownership goals while still maintaining a good quality of life in the present.

How long it takes to save for a house deposit as a solo homebuyer  

For aspiring homeowners, understanding the timeline for saving a house deposit is one of the key ways to stay motivated. That’s why we’ve analysed data from our partner Zoopla on the average house price for first-time buyers in 2023, and adjusted for the 2.7% increase in house prices over the past year.

Our calculations assume a 15% deposit, which is typical for first-time buyers, and are based on the monthly savings potential we identified earlier.

The time required to save for a deposit varies significantly across the UK:

It takes solo buyers just 4 years to save the average deposit in Northern Ireland and Northern England

As for the regions where solo first-time buyers can join the property ladder the quickest - Northern Ireland leads the pack. With an average house price of £133,510, aspiring homeowners in Northern Ireland can look forward to saving for their deposit in just under 4 years (3 years and 11 months) by putting away around £426 monthly.

Scotland follows suit. Those looking to buy an average-priced property for a first-time buyer can expect to save in around 4 years and 1 month, setting aside approximately £430 each month.

This is the same timeline for those in the North East; this region boasts an average house price of £112,970 for first-time buyers, allowing renters to save for a deposit in just 4 years and 1 month, with monthly savings of about £348.

Then there’s the other end of the scale…

Solo first-time buyers in the South take 13 years to save the average deposit

With an average house price of £308,100 for first-time buyers, renters in the East of England face the longest saving period of 13 years and 6 months if they set aside £285 each month.

Similarly, those in the South East, with identical house prices of £308,100, may need to save for about 9 years and 9 months if they set aside £394 every month.

London follows next in line; while salaries are much higher, the average priced property for a first-time buyer is £436,475. Based on saving £582 per month, it could take 9 years and 4 months to purchase a home.

These extended timelines may feel overwhelming, but it's important to remember that buying your first home alone is achievable. Many schemes can help first-time buyers join the property ladder, which we've shared in the next section.

Six ways to fast-track your way to becoming a solo first-time buyer

If you’re wondering how to get on the property ladder as a single person, you’re in the right place. We’ve shared six smart tips to help you accelerate your journey to buying your first home. 

1. Boost your disposable income so you can save a deposit quicker

If you rent alone, consider flat sharing or moving in with family.  Our research shows that splitting rent with one other person can save you around £264 a month. That’s a potential saving of £3,000 a year, which could go straight into your home savings. 

Next, rethink your food shopping habits. Solo renters spend about £34 more per month on groceries. Planning your meals, buying in bulk, and switching to non-branded items could save you around £538 per year.

Don’t forget to negotiate your bills. Utility costs are often £32 higher for those living alone. A quick call to your providers to ask for better rates or discounts can lead to noticeable savings.

If you’re close to the end of your mobile phone contract, consider switching to a SIM-only deal. Uswitch found that the average person saves £352 per year with this move.

Lastly, be mindful of your energy use. Solo renters often pay about £32 more per month for gas and electricity. Simple actions like turning off unused lights and unplugging devices can make a big difference.

2. Consider a Joint Borrower Sole Proprietor Mortgage (JBSP) 

If you’re struggling to save for a house yourself, a JBSP could be your ticket to homeownership. This option allows you to team up with up to four people - whether they’re family, friends or a partner - to pool your incomes together and save for a deposit.

Here’s the key: while the mortgage and deposit are shared, only one person will actually own the home. This means the property is still yours, just with some financial support.

Do, however, keep in mind that with this joint responsibility comes joint liability. If you struggle with a mortgage repayment, the others are responsible for covering the payment. So, it’s essential to choose co-borrowers you trust and that could cover a potential shortfall.

3. Explore Shared Ownership options

If a JBSP isn’t an option, shared ownership might be the solution you’re looking for. This scheme allows you to purchase a share of a property – typically between 10% and 75% – while renting the rest.

With shared ownership, you’ll start with a smaller deposit and enjoy lower mortgage payments, making the path to homeownership much smoother. Over time, you have the option to buy more shares in the property through a process called “staircasing,” gradually increasing your stake as you’re able.

This approach not only helps ease you into owning a home but also keeps your upfront costs more manageable. It’s a flexible way to get started on the property ladder and build your homeownership over time.

4. Set up a Lifetime ISA (LISA) to supercharge your savings

A Lifetime ISA (LISA) can be a game-changer for first-time buyers, giving you a boost in your home-saving journey. Here’s how it works:

You can put away up to £4,000 each tax year into a LISA. The best part? The government tops up your savings with a 25% bonus. That’s an extra £1 for every £4 you save, up to a maximum bonus of £1,000 per year.

So, if you save the full £4,000 each year for five years, you’ll have £25,000 saved—£5,000 of which is a gift from the government. This can really help you get a head start on your home-buying goals. 

5. Keep an eye out for the upcoming Freedom to Buy scheme 

Before Labour were elected, they included a Freedom to Buy scheme in their manifesto. Whilst the full details are yet to be announced, it’s believed that the initiative would see the government act as a guarantor for part of your mortgage, making high loan-to-value (LTV) mortgages more accessible.

The goal? To help more people, particularly younger buyers, get onto the property ladder without needing to save such a large deposit upfront.

While it's not here yet, there is the current mortgage guarantee scheme where participating lenders will offer 95% mortgages until the end of June 2025. 

6. Ready to buy? Speak to a free mortgage broker

If you’ve saved a deposit and are now wondering how to get on the property ladder as a single person, we can help make this happen for you! As a whole market broker, we have access to over 70 mortgage lenders.

We’ll also guide you through the application process, helping you navigate the paperwork and make the whole experience a lot simpler - especially when you’re doing it solo. With us in your corner, buying your first home doesn’t have to feel so daunting. 

Methodology

To calculate how the average cost of bills can differ across the UK, we:

• Referenced SpareRoom’s average rent (Q3 2024).

• Calculated the average price of a council tax band D in each UK region, and halved this figure (on the basis that the cost was shared with a flatmate).

• Used Nimblefins' data on the average UK household budget and divided the figures by 2.3 to focus on what one person would pay. (Their figures focused on a 2.3-person household). 

To calculate the average house price for a first-time buyer in 2024:

• We used the data from our partner Zoopla’s average first-time buyer house price guide from 2023.

• We then calculated what the average cost of a property would be for a first-time buyer in 2024, taking into account that the average house has increased by 2.7% in the last year. 

To calculate the average annual salary post-tax:

• The average annual salary for each region was sourced from Statista.

• This figure was then entered into a salary calculator to calculate the amount remaining after tax deductions.

• No student loans were taken into account.