Rising living costs have made it harder to buy a home, with seven out of 10 (72%) prospective first-time buyers impacted by the ongoing crisis, said Aldermore.

The lender said that a third (32%) of aspiring homeowners have put their purchase on hold and expect average delays of 20 months to buy a property, as it’s taking longer for them to save a big enough deposit.

On average, prospective first-time buyers plan to save £43,500 for a deposit, but nearly two-thirds have been forced to ‘scale back’ their regular savings (64%). One in five (19%) told the lender they’ve decided to look for a cheaper home as a result of the impact of the cost of living crisis.

Switch your savings

Aldermore’s research also revealed that a significant minority of aspiring first-time buyers are missing a trick by failing to make the most of their savings.

While half of prospective buyers (51%) are using high interest savings accounts for their deposit funds, two in five (44%) admitted using current accounts, which in the current high-inflation environment could erode the real value of their savings. Nearly one in 10 (8%) admitted they are relying on cryptocurrency to generate deposit funds.

Jon Cooper, head of mortgage distribution at Aldermore said: “While saving in this current economic climate may feel like a long and arduous journey, we’ve found that the majority of determined first-time buyers think the difficulties are ultimately worth it in order to get on the property ladder.

“It’s important that prospective buyers are aware of the support available to them. Would-be buyers should consider seeking advice from a broker who can lend a helping hand and guide you through the process of becoming a homeowner.”