First time-buyers saved for four years to get onto the ladder, according to Ziglu.

But the personal money app found that more than one in five (22%) said they saved for more than five years.

Those who had to save their deposit said they found it tough – half (50%) of them said it was so hard they considered giving up, with 25% saying they came close to stopping saving several times.

The number of first-time buyers rose to nearly 410,000 last year with average deposits estimated at around £53,935. Affordability is still being stretched with house prices estimated to be around 6.9 times earnings for would-be homeowners. 

How first-time buyers save

Around three out of four (72%) relied on cash saving accounts to build up their deposit, said Ziglu, but around one in eight (13%) invested in cryptocurrencies to help speed up the saving process, while 10% invested directly in the stock market.

Seven out of 10 first-time buyers used two or more methods of saving to raise the money for their deposit.

More than half (56%) said they cut back on going out to boost their deposit savings, while 41% cut back on holidays and 40% spent less on clothes. One in five (19%) even sold possessions to add to their savings pot.

The research also found that 28% of first-time buyers received some money from their parents, while 11% got money from grandparents and 20% were given money by other family members.

Mark Hipperson, founder and CEO of Ziglu said: “First-time buyers have never had it so tough as rising house prices make it harder and harder to raise the money for a deposit.

“At the same time low interest rates make it harder to earn any return on cash savings which despite Government support such as Lifetime ISAs add to the pressure and leave people waiting for four years to raise the money they need.

“Cryptocurrency is increasingly playing a role in helping people save for deposits although clearly given the volatility in the market it cannot be the only way people save and would-be first-time buyers should look to other methods.

“Ziglu’s Boost accounts, for example, with their 5% interest rate offer an alternative savings
fund for anyone raising the money they need for a deposit.”