Saving for a deposit on a house can feel like an uphill climb, especially with rising property prices, everyday living costs, and financial curveballs that seem to pop up just when you’re getting into a rhythm. But don’t worry: while it might take time and a little lifestyle reshuffling, it’s absolutely achievable, even on a modest income.
If you’re dreaming of owning your own place and want to stay frugal while building your savings, you’re in the right place. Below are our top tips to help you save for a house deposit without sacrificing all the things you love. Think smart choices, savvy swaps, and staying consistent.
How to Save For a House
1. Set a Clear (and Realistic) Goal
We know you want to get right to saving, but before you even start thinking about putting money away, it’s important to know exactly how much you need. A typical deposit is anywhere from 5% to 20% of the property’s purchase price. So, if you’re eyeing a £200,000 property, you’ll need at least £10,000 for a 5% deposit.
But don’t forget about extra costs like legal fees, surveys, and moving expenses!
Write down your savings target, break it into monthly or weekly goals, and track your progress. Having a visual representation (like a savings chart or a digital tracker) can help keep your motivation levels high.
2. Audit Your Spending
If you haven’t taken a deep dive into your expenses recently, now’s the time. Go through the last 3 – 6 months of your bank statements and categorise your spending. You’ll probably find a few surprises, like:
- Subscription services you forgot you signed up for
- Frequent takeaways or impulse purchases
- ATM withdrawals with no memory of where the cash went
Once you have a full picture, you can spot areas where you need to cut back. But keep in mind that the aim isn’t to deprive yourself; it’s to redirect money toward your goal.
3. Try a No-Spend Challenge
Want a quick way to supercharge your savings in a short time? Consider doing a no-spend challenge. That could mean no takeaways for 30 days, no new clothes for three months, or a weekend where you don’t spend a single penny.
These mini-challenges can help reset your spending habits and build the discipline that makes saving for a deposit much easier in the long run. The money you would’ve spent can go straight into your deposit fund.
4. Use a Separate Savings Account
One of the simplest yet most effective hacks: separate your savings from your everyday money. When your deposit savings sit in the same account as your day-to-day spending money, it’s way too easy to dip into it.
Set up a high-interest savings account and name it something inspiring like “My First Home”. Automate a monthly transfer to that account on payday. Treat it like a non-negotiable bill – that’ll make saving easier.
5. Slash Your Rent
Let’s face it – rent is often our biggest monthly expense. So, if you can reduce that cost, you can make serious progress toward your deposit.
One smart way to do that? Consider moving into a house share. Not only is rent usually far cheaper than renting a place solo, but you often split the bills, too. That means you can redirect the money you save straight into your deposit fund.
A great place to start your search is SpareRoom, where you can find house shares that suit your budget, location, and lifestyle. Many people save hundreds every month just by making this switch, and some even meet lifelong friends or future housemates in the process!
6. Sell What You Don’t Use
Most of us have things we no longer use or need, such as old clothes, gadgets, and even furniture. Go full Marie Kondo and have a clear-out.
List items on platforms like eBay, Facebook Marketplace, or Vinted. You’d be surprised how much money you can make from things lying around your home. Plus, you can add the extra cash to your deposit savings right away.
7. Boost Your Income (Even Just a Bit)
Cutting back is one part of the equation — earning more is the other.
You don’t need to overhaul your career to boost your income. Here are some side hustle ideas that fit well with a frugal lifestyle:
- Freelancing (writing, design, coding, tutoring)
- Selling crafts or digital products online
- Pet sitting or dog walking
- Renting out a spare room or parking space
- Mystery shopping or online surveys
Even if you only earn an extra £100 a month, that’s £1,200 a year you can add to your deposit.
8. Rethink Vacations and Big Expenses
We all love a getaway, but vacations can seriously derail your savings goals. That doesn’t mean you have to go without them, but you might want to rethink how you do them.
Go for budget-friendly breaks such as camping trips, staycations, or house-sitting gigs abroad (yes, it’s a thing). You’ll still enjoy a change of scenery without wiping out your progress.
The same goes for birthdays, weddings, and Christmas. Start planning ahead, set spending caps, and consider homemade or secondhand gifts.
10. Celebrate Milestones
Saving for a house deposit is a long-term goal, and staying motivated can be tough. That’s why it’s important to celebrate small wins along the way.
Every time you hit a savings milestone (whether it’s £500, £1,000, or halfway to your goal), treat yourself to something small and meaningful. Maybe it’s a nice dinner, a book you’ve wanted, or a cozy night in with a film and your favourite snacks.
Acknowledging your progress will keep your morale high and remind you why you’re doing this in the first place.
Final Thoughts
Saving for a house deposit doesn’t have to mean giving up everything fun or living on noodles for the next year. It’s all about being intentional with your money, finding clever ways to cut costs, and staying consistent over time.
If you make a few key changes, such as reducing your rent with an apartment share, decluttering your finances, and setting clear goals, you’ll be surprised at how quickly your savings can grow.
It’s all about spending wisely and keeping your future in mind. And that first set of keys you hold? It’ll be all the sweeter because you worked hard and planned smart to get there.
