Four in five (80 per cent) recent first-time buyers moved back in with parents to get onto the property ladder.
Almost all (96 per cent) recent first-time buyers surveyed had been offered some form of financial help with their deposit – with over two-thirds (68 per cent) receiving help from family members, while nearly three-fifths (57 per cent) received help from friends.
TSB commissioned the survey of more than 1,000 first-time buyers who had got on the property ladder in the past year.
Despite many moving back with parents or getting extra financial help, many first-time buyers still had to make compromises when it came to the home they eventually purchased, the research indicated.
Nearly two-fifths (38 per cent) said their new home was mostly what they wanted, but with a few compromises. And nine per cent said they had made a major compromise and opted for affordability and location.
But more than a fifth (22 per cent) said they had purchased their “dream home”.
Buyers had also made other sacrifices to get on the ladder. Nearly two-fifths (38 per cent) of first-time buyers had delayed major purchases, 37 per cent had limited socialising and 37 per cent had taken on a second job.
On average, first-time buyers said they had saved for nearly three years.
Those who were renting had been paying £960 a month typically in rent before buying their home.
As a result of buying their first home, 45 per cent said they felt financially more secure. Nearly two-fifths (39 per cent) said they felt relieved.
TSB said its own customer data indicates that first-time buyers are taking out 31-year terms on average – down from 32 in 2024.
Craig Calder, director of secured lending, TSB, said: “It’s clear that compromise is key to getting on the housing ladder in a preferred location – with most first-time buyers forgoing a dream home but feeling relieved, and more financially secure having made the move.
“Many made sacrifices to meet their deposit targets – such as moving in with parents, and taking a second job.”
He said that brokers and lenders can help people find a suitable mortgage deal.
The survey was carried out by Censuswide in July.
Five tips for first-time buyers to get on the ladder
1. Know your numbers. Look at your income and outgoings and make a realistic plan for how much you can save towards a deposit and by when.
2. Check your credit score. Try not to miss any payments. Clear off any debt where possible as this may help with both affordability and the amount you can borrow. It is also worth checking you are registered to vote, as this could affect your credit report.
3. Getting a mortgage agreement in principle will give you a rough idea of what you can borrow based on your current income and credit history.
4. Do your research. Use websites to monitor the market and find the right location, price and size of property for you and your budget. Be prepared to compromise to make sure that you are able to balance paying your mortgage with living comfortably.
5. Consider the total cost, not just the mortgage rate. Make sure to take into account any fees such as arrangement fees, valuation fees or legal fees and build that into your budget.
Source: TSB
