The dream of homeownership feels increasingly distant for many young UK adults, especially in London and the South East where deposits can run well into five figures. But homeownership remains achievable for most working households with a realistic plan and consistent savings habits. The key is understanding how much you need to save, which areas are within reach, and what schemes (like the Lifetime ISA, an existing Help to Buy ISA, and shared ownership) can accelerate your timeline. This guide gives you the numbers to build a realistic deposit timeline for your circumstances. Our Lifetime ISA guide covers the most powerful saving tool for first-time buyers.
What First-Time Buyer Deposits Look Like in 2026
In 2026, the typical first-time buyer deposit in England is between 10% and 15% of the property purchase price. On a £265,000 property, for example, a 10% deposit is £26,500, rising to £39,750 for a 15% deposit. Prices vary dramatically by region: a typical first home in London costs roughly twice the national figure, while in the North East it can be well under £200,000, so the same 10% deposit might be over £50,000 or under £20,000. The HM Land Registry UK House Price Index publishes average first-time buyer prices for each region every month. First-time buyers with a 5% deposit can access 95% LTV mortgages, though rates are higher. A Lifetime ISA bonus of 25% from the Government on savings up to £4,000 per year effectively makes this the highest-return savings account available — and it is specifically designed for this purpose.
- Example £265,000 property: £26,500-£39,750 deposit (10-15%)
- London: a 10% deposit is often over £50,000
- Lifetime ISA bonus adds 25% to savings, up to £1,000 per year free
Realistic Saving Timelines by Salary
Assuming you can set aside the following amounts each month, here are approximate timelines to save a £26,500 deposit (10% of a £265,000 property): a £25,000 salary saves around £150 per month, taking approximately 15 years; a £35,000 salary saves around £250 per month, taking approximately 9 years; a £50,000 salary saves around £400 per month, taking approximately 5.5 years. These figures improve significantly if you use a Lifetime ISA — the 25% Government bonus reduces the saving period by roughly 20-25%. Partnering with another saver also roughly halves the time. These timelines assume you start from zero and do not account for shared ownership or help from family, which can significantly reduce the upfront deposit required. (The Help to Buy equity loan scheme closed in 2023.)
- Single earner £35k: £250/month savings = 9 years without LISA
- Single earner £35k with LISA bonus: ~7 years
- Two earners at £35k each: ~4 years without LISA
Government Schemes That Accelerate Your Timeline
Three key schemes can meaningfully reduce your deposit timeline. The Lifetime ISA (LISA) pays a 25% Government bonus on savings up to £4,000 per year — saving £333 per month earns £1,000 in free Government money annually. To qualify, you must be aged 18-39 and the property must cost £450,000 or less. The Help to Buy ISA (closed to new savers since November 2019; existing accounts can be paid into until 30 November 2029) also pays a 25% bonus, up to £3,000 on £12,000 saved. Shared ownership allows you to buy a 25-75% share of a property and pay reduced rent on the remainder, dramatically lowering the deposit requirement. Right to Buy (for council tenants) still offers discounts for eligible applicants, though the maximum discounts in England were cut sharply in November 2024.
- first home
- deposit
- saving for house
- property
- mortgage