First-time buyers compromising to get on the ladder, with 80% moving back home to save

Four fifths (80%) of first-time buyers moved back in with their parents to save for a deposit, TSB finds. 

TSB surveyed over 1,000 first-time buyers who had bought a property in the past year – and found that compromise and location are key, as three quarters (75%) of new property owners opted for fewer bedrooms, a smaller property and less outdoor space to buy in a preferred post code.   

Almost two fifths (38%) said their new home was mostly what they wanted, but with a few compromises. Over a fifth (22%) said they had purchased their dream home, while almost one in 10 (9%) said they had made a major compromise and opted for affordability and location. 

TSB found that almost every first-time buyer (96%) surveyed was offered some form of financial help with their deposit – with over two thirds (68%) receiving help from family members, while almost three fifths (57%) received help from friends – which TSB’s Craig Calder says is an ‘increasing trend’.

To get on the ladder, almost two fifths (38%) had delayed major purchases, limited socialising (37%) and took on a second job (37%).  

On average, polling showed that first-time buyers saved for almost three (2.95) years; with those in Wales taking the longest to save up (3.39 years) and those in the East Midlands saving up the quickest (2.56 years). 

On average, first-time buyers were paying £960 a month in rent prior to purchasing their home. 

As a result of buying their first home, 45% felt financially more secure and almost two fifths (39%) felt relieved. 

TSB customer data also shows that first-time buyers are taking out 31-year terms on average – down from 32 in 2024. The average deposit size in the UK is 18.9% – with London the highest, at 23%, compared to Wales (13%). 

Overall, the average age of first-time buyers is 32, up from 31 in 2024. The regions with the oldest first-time buyer age are London (34), the South East (33) and East Midlands (33). At the other end of the scale, Yorkshire & The Humber has the youngest average age, at 30. 

Craig Calder, director of secured lending at TSB, 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."