Half of aspiring first-time buyers turning to alternative second income sources

While barriers for home ownership remain, would-be buyers are becoming bolder in their aim to own a property, with 49% turning to side hustles to save for a deposit, new research from Santander shows.

Seven in ten aspiring buyers say that home ownership is difficult for young people today with a similar number (77%) believing that the previous generations had an easier time saving for a home. The top three challenges are cited as cost of housing (78%), increased cost of living (75%) and high deposit requirements (59%). Additionally, over a quarter (28%) say they can’t rely on financial support from family to help them purchase a first home.  

Despite the challenging environment, the ambition to own a home remains a priority for seven in ten (72%) prospective first-time buyers. As a result, almost half (49%) are now combatting affordability struggles by turning to unusual sources of secondary income to boost their deposit and 'home hustle' their way to ownership. 

The average ‘hustler’ earns £442.62 per month in exchange for an estimated seven hours work per week. Returns can be even higher, with 12% reporting they earn more than £1,000 a month. Nearly two thirds (64%) save most or all of their  hustle income towards building a deposit.

Popular home hustles include responding to surveys (39%), gardening (20%), selling personalised items (19%), selling home baking (18%), and dog walking (17%).

Home hustles aren’t the only way first-time buyers are boosting their savings. Many also report that they would put away the entirety of any bonus or pay rise (24%), take up savings challenges such as the penny a day or the envelope challenge (23%), or skill swapping with friends - for example doing DIY in return for seamstress work (10%) to build up their deposit. Meanwhile, almost a quarter (23%) have sold childhood collectibles, including Beanie Babies or Pokémon cards, to boost their deposit savings.  

While many are beginning to find innovative ways to overcome their savings struggles, there are common beliefs holding other first-time buyers back from exploring homeownership - which the advice sector could help them overcome. 

Data from Santander shows one in five (19%) first-time buyers believe they need a minimum of £50,000 to buy their first home, while a similar number (17%) believe the maximum LTV available to them is 95%. A quarter (26%) of first-time buyers also believe their affordability has got worse in the last 12 months.

David Morris, director of mortgages at Santander UK, said: “Home hustling is just one-way would-be buyers are boosting their income streams, expediating the time it takes to save for a deposit, stamp duty and legal costs as they take back control of their homeownership journey. But it’s clear that many common misconceptions still exist. This is where mortgage brokers provide invaluable support for first-time buyers, helping them to see behind the interest rates and headlines, and understand what options are available to them.”