DEPOSITS
THE £50 REALITY WHY SO MANY FIRST TIME BUYERS FEEL HOMEOWNERSHIP
IS SLIPPING AWAY For many young adults, the dream of owning a home has never felt further away. Rising living costs, high rents and stubbornly expensive house prices have created the perfect storm, leaving many aspiring buyers wondering whether they’ll ever be able to afford a place of their own
that have failed to keep pace with everyday expenses. For many aspiring buyers,
Research from NHG Homes highlights just how difficult that journey has become. Surveying 2,000 non-homeowners aged 20 to 35 across Great Britain, the findings reveal a generation working hard, managing finances carefully and still struggling to make meaningful progress towards homeownership. Perhaps the most striking finding is that nearly four in 10 respondents have less than £50 left at the end of each month, while one in five say they have nothing left after paying their bills. When everyday living absorbs almost every penny of income, saving for a deposit becomes an enormous challenge.
the challenge isn’t spending less, but trying to save in an increasingly expensive world. THE EMOTIONAL COST OF WAITING The impact extends far beyond bank balances. Nearly two-thirds of those surveyed say financial worries have affected their mental health, while almost half report losing sleep over money concerns. Many also say that the pressure has affected their social lives and their overall wellbeing. Perhaps most tellingly, only 15% believe homeownership is achievable for them, with confidence falling further among those in their early 30s who have already spent years in the rental market. For many, the issue isn’t simply about buying a property, but feeling an important life milestone is becoming increasingly out of reach. EXPLORING DIFFERENT ROUTES TO HOMEOWNERSHIP While these figures paint a challenging picture, they also highlight why it’s more important than ever for buyers to understand the options available. Shared Ownership continues to offer a practical route into homeownership for people who cannot afford to buy outright. By purchasing a share of a property and paying reduced rent on the remainder, buyers typically need a much smaller deposit than with a traditional purchase, making homeownership accessible sooner than many expect.
At NHG Homes’ Heybourne Park development in Colindale, for example, 5% mortgage deposits start from £4,350, demonstrating that stepping on to the property ladder may be more achievable than some aspiring buyers realise. SUPPORT BEYOND THE DEPOSIT Recognising that buying a first home can feel overwhelming, NHG Homes has also launched The DOOR Club (Deposit Out Of Reach), a community designed to support aspiring first time buyers throughout their journey. Alongside practical guidance on Shared Ownership, The DOOR Club offers expert financial wellbeing advice, educational resources and events designed to help buyers understand their financial position and build confidence in taking that first step. The research is a timely reminder that today’s first time buyers are not lacking in ambition or financial discipline. Many are simply navigating a housing market that has become increasingly difficult to enter. While the challenges are undeniable, understanding the different buying routes available and seeking expert guidance can help turn what feels like a distant dream into a realistic plan. For many aspiring homeowners, the first step on to the property ladder may be closer than they think.
THE MYTH OF THE CARELESS SPENDER
There’s a common misconception that young people simply need to budget better. However, the research tells a very different story. Almost half of respondents actively avoid unnecessary spending, nearly four in 10 carefully track their finances, and around a third save regularly.Yet despite these responsible habits, 66% say they feel they’re doing everything right financially but still aren’t getting ahead. Respondents overwhelmingly point to external pressures. The cost-of-living crisis was identified as the biggest barrier, followed by rising housing costs and wages Only 15% believe homeownership is achievable for them
For more information about The Door Club visit: nhghomes.com/the-door-club
34 First Time Buyer October/November 2026
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