Prospective first-time buyers expect to save an average deposit of £48,168 before purchasing a home, according to Aldermore’s latest First Time Buyer Index.
The research shows that affordability pressures continue to push homeownership further out of reach, with aspiring buyers expecting to be 37 before getting on the property ladder, compared with an average age of 31 for recent buyers.
Nearly two thirds of prospective buyers, at 64%, said they are saving more than originally planned as mortgage rates and house prices continue to rise.
More than a third, at 35%, said they would need an average annual salary increase of £21,646 to achieve their homeownership goals.
Many buyers are taking steps to improve their financial position, with 40% looking for higher-paying jobs, 22% negotiating pay rises and 21% switching or considering switching careers.
Some have taken more significant measures, including 20% moving roles for higher bonuses, 17% delaying leaving a job to strengthen a mortgage application and 13% considering careers they do not enjoy to improve affordability.
Despite larger deposits, expectations around mortgage affordability remain lower than actual costs.
Prospective buyers said they would allocate around 27% of their income to mortgage payments, while current homeowners reported spending closer to 31% on average, rising to 41% for those aged 18–24 and 37% for buyers living near London.
Saving timelines have also lengthened, with 45% of first-time buyers expecting to spend 5 years or more building a deposit and 5% anticipating it will take more than a decade.
Jon Cooper, director of mortgages at Aldermore, said: “The UK’s first time buyers aren’t just tightening their belts, they’re rethinking their entire career paths to try and get on the ladder.
“From chasing pay rises to moving into different roles, prospective homebuyers are reshaping their working lives to secure a home of their own. Their ambition is as strong as ever, but the sacrifices they’re making are more significant.
“For anyone considering a career change to boost their income, it’s important to take a measured approach, looking at long term earning potential, retraining options and if a new role genuinely aligns with your skills.
“Before making a major move, talk to your current employer about progression, responsibilities and a pay rise that could unlock opportunities without the upheaval of starting again.”
