80% of first-time buyers (FTBs) have moved back in with parents to get on the housing ladder, research from TSB revealed.
Most said compromise and location were important, with 75% choosing fewer bedrooms, a smaller home or less outdoor space to buy in a preferred postcode.
38% said their new home was mostly what they wanted with a few compromises.
22% said they had bought their dream home and 9% said they had made a major compromise, choosing affordability and location.
Nearly all FTBs surveyed (96%) got some form of financial help with their deposit.
68% received help from family, while 57% got help from friends.
Craig Calder, director of secured lending at TSB, said this was an “increasing trend.”
To save for their deposit, 80% moved in with their parents.
38% delayed major purchases, 37% limited socialising, and 37% took on a second job.
On average, FTBs spent nearly three years saving for a deposit.
Buyers in Wales took the longest at 3.39 years, while those in the East Midlands saved up the fastest at 2.56 years.
Before buying, FTBs paid an average of £960 monthly rent.
After purchase, 45% felt more financially secure, and 39% felt relieved.
Additionally, TSB data showed FTBs are now taking out 31-year mortgages on average, down from 32-year terms in 2024.
The average deposit size was 18.9% in the UK, with London highest at 23% and Wales lowest at 13%.
The average age of a FTB is now 32, up from 31 in 2024.
London has the oldest average age at 34, followed by the South East and East Midlands at 33.
Meanwhile, Yorkshire and the Humber has the youngest average at 30.
Calder 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.”
Mary-Lou Press, president at NAEA Propertymark, said: “This has been a growing trend for some time, indicating how expensive it is for first-time buyers to get onto the housing ladder, so much so that they have to make enormous sacrifices and/or depend upon financial help from their relatives just to purchase a property.
“What is needed to make housing more affordable is targeted help, and we are seeing many financial institutions take a lead here with flexible mortgage products, as well as a sustainable supply of new homes that will stabilise supply and demand levels, which can hopefully be achieved by the UK Government and the devolved administrations meeting their individual housing targets.”
