No matter where you want to live or how old you are, it is always a battle to save for a deposit. And it’s arguably never been harder than it is now.

In our latest edition of Barclays Property Insights, the scale of the challenge is laid bare. Overall, our data shows that spending on rent and mortgages has increased 7.7 per cent year-on-year. While interest rates are part of this, the cost of rent is also increasing, with almost three in five (58 per cent)  renters telling us that their rent has increased in the last 12 months, and three in ten (29 per cent) saying it had gone up in the last six months.

This, which has been become known as ‘rentflation’, has left the average UK renter facing an increased monthly cost of £105.90, and it’s worse for Gen Z, who have been hit with an average increase of £134.70 per month. That’s the equivalent of £1,616 a year – a huge amount of money to find when your career might just be getting started.

The effect, as you might imagine, is causing first-time buyers to take more time to make that first step. According to our data, the average age of a first-time buyer in the UK rose to nearly 34 in 2024, up from 32 only two years earlier.  

But, encouragingly, the homeowners of tomorrow are finding innovative ways to save, and they are more determined than ever. 

Amidst these challenges, budding homeowners are taking steps to secure their deposits in savvy, or even entrepreneurial, ways.  Our research revealed that nearly a quarter (24 per cent) have taken steps to cut back on discretionary spending, with 18 per cent saying they are taking fewer holidays, and 14 per cent telling us they have taken on additional work to earn more money.  

It shouldn’t come as a surprise – freelancing platforms have been growing, and our ever more interconnected digital economy means there are increasingly more new and innovative ways for people to generate income.

Though every generation has its side hustlers, it is Gen Z that are the most likely to take one on, with 23 per cent saying they do so, compared to 12 per cent across all ages. They’re also the most likely age group to think about investing as a means to build up a housing pot, with a fifth (19 per cent) putting money into stock, shares or other financial products, compared to just three per cent of Baby Boomers.

The quest to save money is also seeing many return to the nest, with 14 per cent of Millennials, and 11 per cent of Gen Z moving in with family or friends to save on rent. 

For those making sacrifices for their future home, there’s a clear plan of how and when their hard work will pay off. On average, UK homeowners who implemented these strategies told us that their savings efforts have enabled them to buy a property 2 years faster than they’d initially expected. 

Having said that, looking at those who already have a foot on the property ladder, we see that oftentimes saving by yourself isn’t enough. While three-fifths (58 per cent) told us that their primary source of funding for their deposit came from their own savings, a fifth (19 per cent) said they used a spouse or partner’s savings, and more than one in 10 had a lump sum contribution from parents or grandparents.    

For those seeking to buy their first home, we have a number of products in place to help. Barclays Springboard Mortgage and Mortgage Boost are designed precisely to support first-time buyers get on the property ladder. You can read more about them here.