Six in 10 first-time buyers say saving for a home damaged their quality of life

Research from Yopa has found that 61% of first-time buyers believe saving for their first home negatively affected their quality of life, with many making significant personal and financial sacrifices to achieve homeownership.

Yopa surveyed first-time buyers who purchased their first property within the last two years, examining the sacrifices they made to save for a deposit, how long they spent building their savings and whether they believe the effort was worthwhile.

More than just cutting back on luxuries

The research found that first-time buyers commonly sacrificed meals out and takeaways, holidays abroad and nights out with friends to save for a deposit.

Other compromises included clothes shopping, concerts and festivals, gym memberships, hobbies and sporting activities, highlighting how the cost of getting onto the property ladder can affect spending beyond essential household expenses.

Overall, 61% of respondents said saving for their first home had negatively affected their quality of life. Some 13% reported a significant negative impact, while 24% described the effect as moderate and a further 24% said it was minor.

Major life milestones put on hold

The sacrifices extended beyond leisure spending, with the research finding that prospective homeowners had also delayed major personal and professional decisions.

Changing jobs or pursuing a different career was the most commonly cited life decision put on hold, followed by having children or expanding a family, moving out of the parental home and getting married.

Other respondents delayed getting a pet, pursuing further education or professional training, or starting their own business.

The findings illustrate how the challenge of saving for a property deposit can influence wider financial planning and life choices, potentially affecting career development, family formation and other long-term ambitions.

Buyers also took steps to increase their savings, most commonly by working overtime or taking additional shifts, relying on financial gifts from family or friends, or selling personal possessions.

Years spent saving for a first home

For many first-time buyers, saving for a deposit took several years.

Almost three-quarters (73%) spent at least three years actively saving towards their first property. Some 23% took between five and six years, 16% spent between seven and 10 years saving, and 17% took more than a decade to build their savings.

The research also found that 46% allocated more than 20% of their monthly disposable income towards their first home, with 9% setting aside more than half.

Despite these efforts, many buyers still had to compromise on their eventual purchase. The most common concessions included choosing a smaller property, accepting a less desirable location or buying a home requiring more work than originally planned.

But was it all worth it?

Despite the financial pressures and personal compromises involved, most respondents said the effort had paid off.

Yopa found that 88% believed the sacrifices they made to purchase their first home were worthwhile.

By contrast, 12% felt their sacrifices were either not entirely worthwhile or not worthwhile at all.

Government support must address supply, not just demand

The findings come ahead of the Autumn Budget, when the Government is expected to confirm further details of its proposed Your First Home scheme. The initiative would allow eligible first-time buyers to purchase qualifying new-build properties with deposits as low as 2.5%, supported by a 20% government-backed equity loan.

While such measures could reduce the initial financial barriers to homeownership, questions remain over whether increasing buyers' purchasing power without addressing housing supply could put further upward pressure on property prices.

Verona Frankish, chief executive of Yopa, said: "It's clear that first-time buyers need help getting onto the property ladder, and our research demonstrates the extraordinary lengths people are willing to go to in order to achieve that ambition. For many, it's not simply a case of sacrificing holidays or nights out, but putting major life milestones on hold, delaying career progression and spending years saving every spare penny.

"The fact that the overwhelming majority believe those sacrifices were worth it shows just how important homeownership remains. However, the reality is that years of initiatives designed to stimulate buyer demand have failed to resolve the underlying affordability challenge and, in some cases, have contributed to higher house prices.

"So while it's encouraging that the Government recognises the need to support first-time buyers, there is a very real danger of repeating the mistakes of the past. Schemes that increase purchasing power without delivering sufficient additional housing risk pushing prices higher, while those buying with very small deposits could find themselves particularly exposed to negative equity should property values fall, especially where new-build premiums are involved.

"What we really need to see is meaningful action to increase the supply of homes that first-time buyers can genuinely afford, rather than another initiative that primarily fuels demand. Helping people onto the ladder is important, but ensuring they can purchase a suitable home at a sustainable price is just as crucial."