5 tips for first-time buyers who are saving for a deposit

Recent data shows that the average deposit for first-time buyers in England is around £68,000, equivalent to nearly 23% of the purchase price. But the good news? With the right mindset and strategies, you can make real progress and start moving toward homeownership.

At Squires Estates, we’ve been serving the property markets in Finchley, Hendon and Mill Hill for over 20 years. We’ve helped hundreds of first-time buyers make that leap. Our experience ensures that you’re working with local experts who understand the North London market. With nearly perfect 5-star reviews from across external platforms, in a demanding industry such as property, you can gain confidence in our service and insight.

If you’re a first-time buyer or simply preparing for the future, here are five actionable strategies to help you build your deposit more quickly and intelligently.

1.     Start Saving Early — Even Small Amounts Add Up

The earlier you begin saving, the more time compounding and consistency will work in your favour. Whether you start with £50, £100, or £200 a month, you’ll develop good habits and establish the right mindset. Over months and years, the amounts accumulate, and as incomes rise, you can gradually increase what you save.

In London and the Home Counties, small savings can make a surprisingly big difference. Combine this habit with automatic transfers (e.g., setting up a standing order) so you pay yourself first before spending. Soon, saving becomes the norm, rather than an afterthought.

2.     Cut Back on Luxuries - Mindful Spending Matters

This day, all value modern conveniences, but by reassessing where your money goes, you’ll free up more for your deposit fund. Consider:

• Can you switch to a cheaper TV or streaming package?
• Could you reduce evenings out at restaurants or bars by planning more home-based social evenings?
• Are there memberships or subscriptions you rarely use?

According to recent spending surveys, the average UK household spends thousands a year on discretionary items. Redirecting just a portion of that into your deposit pot can accelerate your timeline and build momentum.

3.     Sell Unused Items, Turn Clutter into Cash

One of the easiest ways to raise extra cash is to sell items you no longer need. Whether it’s old DVDs, books, clothes, sports gear or tech gadgets, monetising them on sites like eBay, Depop or via a car boot sale can add up.

If you clear and sell items worth just £500 each year, that’s almost £2,000 over four years, enough to boost your deposit by a significant margin. Plus, this helps you start life in a new home with fewer belongings, which is a win in itself.

4.     Consider Downsizing or Sharing — Save More on Your Current Home

If you’re paying high rent or living in a larger space than you need, downsizing (or sharing) is a viable strategy, especially in North London. By moving to a slightly smaller property or an area a few stops away, you can significantly reduce your monthly outgoings.

Consider renting out spare rooms (if your lease and building regulations allow it). Many renters earn an extra £300-£600 per month, which could significantly accelerate your deposit savings by several months.

Leveraging your current living arrangement wisely could mean the difference between saving for five years and saving in two.

5.     Use a Lifetime ISA (LISA) — Government Bonus for First-Time Buyers

One of the most powerful tools for first-time buyers is the Lifetime ISA (LISA). If you’re aged between 18 and 40, you can save up to £4,000 per tax year, and the government will add a 25% bonus, up to £1,000 free.

That means if you fully utilise the LISA each year for four years, you could receive £4,000 in bonus payments alone, a significant boost for your deposit.

Remember to review the rules and carefully consider the benefits of cash versus stock and share options. Open the account as early as possible to maximise the time your savings have to grow.

Why Working with Local Experts Makes a Difference

At Squires Estates, we don’t just help you save, we help you buy. Our long presence in North London areas of Finchley, Hendon and Mill Hill means we know exactly where your money will go further and what local trends you should watch. With deep ties to these areas and a reputation backed by excellent reviews, we’re here to guide you from deposit-saver to proud homeowner.

If you’re ready to take the next step or want a friendly chat about what you’ll realistically need for your deposit in today’s market, why not reach out to our local team? We’ll help you understand:

• How much deposit will you need based on your target area
• What you could reasonably save given your timeline
• Properties that fit your budget and plan

Start today. Even modest monthly savings add up, and you’ll be working with property experts who have helped hundreds of home buyers over the last 20 years.