How long does it take to save a deposit?
It's one of the most practical questions a first-time buyer can ask, and one of the hardest to answer without looking at real numbers. The honest answer is that it depends on where you live, what you earn, what you spend, and how much of a deposit you are aiming for. But that's not particularly useful on its own.
This article breaks it down into real figures so you can build a plan that's specific to your situation, not just a vague aspiration.
Start with the target
Before you can work out how long saving will take, you need to know what you're saving toward.
The minimum deposit for most mortgage lenders is 5% of the purchase price. A 10% deposit unlocks better mortgage rates and is a more comfortable target. The figures below show what those look like at different property prices.
- £180,000 property: a 5% deposit is £9,000, a 10% deposit is £18,000.
- £220,000 property: a 5% deposit is £11,000, a 10% deposit is £22,000.
- £260,000 property: a 5% deposit is £13,000, a 10% deposit is £26,000.
- £300,000 property: a 5% deposit is £15,000, a 10% deposit is £30,000.
- £400,000 property: a 5% deposit is £20,000, a 10% deposit is £40,000.
Your target property price will depend on where you want to live and what size property you need. Property prices vary enormously across the country: a flat in Manchester or Leeds costs considerably less than a comparable property in Bristol or London. Research current prices in your target area so your savings target is grounded in reality rather than a national average.
Also remember that your deposit isn't the only upfront cost. Solicitor fees, a survey, stamp duty (where applicable), and moving costs typically add between £4,000 and £10,000 on top. Build these into your savings target from the beginning so you're not caught short on the day.
How much can you save each month?
This is the other half of the equation. The amount you can realistically save each month, after rent, bills, food, transport, and all your other regular costs, determines how quickly you reach your target.
- Saving £300 per month accumulates £3,600 per year.
- Saving £500 per month accumulates £6,000 per year.
- Saving £700 per month accumulates £8,400 per year.
- Saving £1,000 per month accumulates £12,000 per year.
The gap between where most people think they're saving and what they're actually putting aside each month is often significant. Go through three months of bank statements and work out the genuine figure: what's left after every outgoing, not what you intend to save in an ideal month.
Some real scenarios
Here are a few illustrative examples that show how the numbers play out across different circumstances.
A buyer in the Midlands targeting a £200,000 property with a 10% deposit target of £20,000, saving £500 per month, would take approximately three and a half years to reach their goal. Adding a government Lifetime ISA bonus of up to £1,000 per year reduces that to around three years.
A buyer in a northern city targeting a £160,000 property with a 10% deposit of £16,000, saving £600 per month, would reach their target in just over two years, potentially less with the Lifetime ISA bonus.
A buyer in London or the South East targeting a £380,000 property with a 10% deposit of £38,000, saving £800 per month, would take approximately four years without additional help. With the maximum Lifetime ISA bonus applied over four years (£4,000 in bonus), the timeline shortens slightly.
These are illustrative figures. Your numbers will be different. The point is to run your own version of this calculation with your actual savings capacity and your actual target, rather than working from a vague sense of how long it might take.
The Lifetime ISA: make it work for you
If you're a first-time buyer between the ages of 18 and 39 and you don't already have a Lifetime ISA, opening one should be a priority. Here's why.
For every £4 you save into a Lifetime ISA, the government adds £1. You can save up to £4,000 per year, meaning the government contributes up to £1,000 per year in free money. Over four years of maximum contributions, that's £4,000 in government bonus on top of your own savings.
The account must be open for at least 12 months before you can use the funds toward a property purchase. So even if you're not ready to buy for several years, opening the account as soon as possible starts that clock running.
The one condition worth understanding: the property must cost no more than £450,000. If you're targeting something above that price, the Lifetime ISA funds can still be saved, but the bonus can't be used toward the purchase.
Practical strategies for saving faster
Saving a deposit while paying rent is genuinely difficult. These strategies won't make it easy, but they can make it meaningfully faster.
- Automate it. Set up a standing order to move money into your savings account on the day your salary arrives, before you have a chance to spend it. Saving what's left at the end of the month is consistently less effective than spending what's left after you've saved.
- Reduce your fixed costs. Fixed costs (rent, subscriptions, insurance, phone contracts) are often easier to reduce than variable ones. Switching providers, cancelling unused subscriptions, or negotiating a better deal on bills can free up a meaningful monthly amount with a one-off effort.
- Consider your housing situation. If you're in a position to move to a cheaper rental, take in a flatmate, or temporarily move back to family accommodation, the impact on your savings rate can be dramatic. A year of paying significantly less in rent can add thousands to your deposit fund.
- Use a Help to Buy ISA if you already have one. The scheme is closed to new applicants, but if you have an existing account, continue saving into it for the 25% government bonus on up to £12,000 of savings.
- Save bonuses and windfalls separately. Tax refunds, work bonuses, birthday money, and any other irregular income should go straight to the deposit fund rather than into your current account, where they'll be absorbed into spending.
- Review your savings rate every six months. Your income and outgoings change over time. A pay rise is an opportunity to increase your savings rate rather than simply increase your standard of living. Even increasing your monthly savings by £100 after a pay rise can shorten your timeline by months.
When saving faster is not possible
Sometimes the constraint is genuine: rent is high, income is limited, and there simply isn't much margin to work with. In these situations, it's worth considering whether there are paths to homeownership that require less upfront saving.
Shared Ownership allows you to buy a share of a property, typically between 25% and 75%, and pay rent on the remainder. Your deposit is calculated on the share you're purchasing rather than the full property value, which can significantly reduce the amount you need to save. It comes with its own complexity and ongoing costs, but for some buyers it's a more accessible route than standard ownership.
The Bank of Mum and Dad, as it's commonly called, is a significant factor in the housing market. If you have family members who are in a position to gift or loan money toward a deposit, this is worth a frank conversation. Lenders accept gifted deposits in most cases, provided the donor confirms they have no interest in the property.
Joint ownership with a friend, sibling, or partner is another route that some buyers take. Combining incomes increases borrowing capacity, and combining savings accelerates the deposit accumulation. It requires careful thought about the legal structure and what happens if circumstances change, but it's a legitimate option that more buyers are exploring.
The short version: how long it takes to save a deposit depends on your target property price, your current savings capacity, and whether you're using available tools like the Lifetime ISA to accelerate the process.
Run your own numbers with your actual figures: target price, deposit percentage, monthly savings amount, and any government bonus you're eligible for. The result will give you a real timeline rather than a vague aspiration.
If you want help understanding what you could borrow with the deposit you currently have, or what a realistic purchase looks like in your target area, an adviser conversation is a good starting point, and it costs nothing.
This article is for informational purposes only and does not constitute financial advice. Always speak to a qualified mortgage adviser before making decisions about borrowing.