Grandmother and child

22 September 2015

Aros i mewn yw’r mynd allan newydd

With summer drawing to a close and days soon getting shorter, those who are saving for their first home will know that this is a prime time for putting away those extra pennies. The chillier months present us all with an opportunity to cut back on the luxuries we’ve been used to in the summer months – eating out, an evening drink in a beer garden, days at the beach – and really focus on our savings.

Principality’s Savings Product Manager Kate Murray gives her advice to those first time triers, or people that are looking to buy their first home, who can watch their savings rise by making the most of staying in this autumn.

With latest figures showing a minimum deposit of five per cent is required to secure a first home, and the average price of a house being £169,414*, today’s savers need to get their hands on £8470.70 in order to get their foot on the housing ladder. A significant sum of money, it can no doubt be discouraging seeing the months go by and feeling nowhere nearer to getting those keys in your hand.

Fear not, as there are of course plenty of ways to cut back on extra spending to get those keys in your hand that much quicker. And with autumn nearly here and many of us seeking shelter indoors, this gives us many options to increase savings. 

When it comes to what you’re currently spending though, we asked 1,000 of you first time triers on your spending habits as you strive to get your foot on the ladder, and here’s what we found: 

  • You currently spend £28.13 a month on nights out and the pub, but just under half of you (45%) would happily cut this down for the sake of getting on the property ladder in 12 months
  • While taxis set you back £9.29 a month, even more of you would also ditch the taxi rides too (48%)
  • Interestingly, the exact same number of you would happily opt to eat in instead of dining out for the sake of your house deposit too, despite spending £28.69 on this monthly
  • In total, making small tweaks to your social life by cutting back on nights out, taxi journeys and dining out with your house deposit in mind could save you £793.32 a year

So, now that we know the simple changes savers are willing to make, how can we put this into action and turn those pennies into pounds?

Brush up on those Scrabble skills

Scrabble piece Board games or movie nights are a simple way of staying entertained on a night in, but a chance to stay social with your friends at the same time. Never underestimate the fun you can have with a game of Pictionary!

Cook up a storm

Saucepan As nice as it might be to have someone do the cooking for you in the restaurant down the road, cooking up a delicious meal (on a budget) is not a hard task and could save you money in the long run. Particularly in the chillier autumn season, the ingredients for hearty stews don’t break the bank and can last for days.

Be savvy with online discounts

Discount Tag There are tonnes of brilliant online discounts right at your fingertips that could just save you a hefty amount. If you are looking to treat yourself, sites like vouchercodes.co.uk and wowcher.co.uk have hundreds of deals every day. But remember, just because it’s a discounted price, it doesn’t necessarily make it a good deal. Don’t let the money off sway you unless you’ve done your research on the item.

Make savings around the house too

Radiator There is no point staying in to save money for your deposit if you’re not going to implement savings tactics around the house too. With the autumn approaching, the temptation to put the heating on will start to creep up on you. It’s a longstanding myth that if you have the heating on low all day you will in fact save money. Wrong.

For more information check out First Time Trier at www.principality.co.uk/FirstTimeTrier or @FirstTimeTrier.

Making small sacrifices to your lifestyle in order to save money for your house deposit really doesn’t have to be hard. Cutting back on the nights out and the fancy restaurants is an easy place to start and will see you reaping the benefits in no time. With autumn soon upon us, staying in really is the new going out.

Source: http://www.thisismoney.co.uk/money/mortgageshome/article-2995647/Average-UK-house-price-just-30-time-highs-281-753-March-says-Rightmove.html*
*By clicking on the links you will leave the Principality website - Principality is not responsible for the content of external websites.

Published: 22/09/2015