How to Save a Deposit for Your First Home
Saving for your first home can feel like one of the biggest hurdles to getting on the property ladder. Between rising rents and everyday living costs, it’s easy to feel overwhelmed – or even assume it’s an impossible task. However, with the right approach, saving for a deposit doesn’t have to be as daunting as people might think.
At L&Q, we see buyers take all sorts of different routes to pulling together their deposit. For some, saving means making a short–term sacrifice; for others, it’s about finding a rental option that leaves room to put money aside. For many of our buyers, schemes like Shared Ownership have been the key. A government–backed scheme designed to help first–time buyers take their first step onto the property ladder, Shared Ownership allows buyers to purchase a share in a property (usually between 25% and 75%) and pay rent on the remaining portion. Because buyers only need a deposit for the share they’re purchasing, the upfront costs are often far lower than buying on the open market.
For Aisha Pinto–Pamben, 25, saving for her first home meant moving back in with her parents after university. Living at home in Romford while working in Stratford allowed her to focus on her long– term goal of buying rather than renting. “I always knew I wanted to buy rather than rent. Renting felt like throwing money away, and I wanted to invest in something for my future. Living at home whilst working meant I could take some time to save – something I’m really grateful to my parents for,” she explains.
Aisha went on to buy a 25% share of a two–bedroom, two–bathroom Shared Ownership apartment at Barking Riverside. Having grown up in a family that had used the scheme themselves, she already understood how it worked. “My parents bought their home through Shared Ownership, so I was already aware of how it worked. It made getting onto the property ladder much more achievable for me, especially as a solo buyer,” she says.
For others, saving doesn’t involve moving home but finding a rental option that makes saving possible alongside everyday life. “I always wanted to live in London, but renting here can be really challenging financially,” says Elliot, who rented through London Living Rent (LLR) at L&Q at Lexington Gardens in Nine Elms. “Moving into an LLR home at Lexington Gardens gave me the independence and flexibility I needed to start saving for a home of my own.” With rent set below market rates, LLR is designed to help renters in the capital put money aside each month.
Homes outside of London are covered by the Rent to Buy scheme, also designed to transition renters into homeowners through subsidised rents. For Elliot, it meant living alone in a modern home without having to compromise on location or lifestyle. “LLR allowed me to live in a great location, in a high–quality home, while saving up each month. It gave me the lifestyle I wanted, but still left room for my long–term goal of homeownership.” After two years, those savings – combined with some inheritance – helped Elliot secure a deposit for a two–bedroom Shared Ownership home close to where he had been renting. “The best part for me was that it offered me stability. Knowing that I had a secure tenancy meant I could properly plan my finances.”
Everyone’s journey to homeownership looks different, and there’s no single right way to save for a deposit. Whether it’s changing your living situation, choosing a rental option that supports saving, or exploring schemes like Shared Ownership, the key is finding an approach that works for your lifestyle and budget. Buying through Shared Ownership can also mean securing a home with a much smaller deposit than many people expect – sometimes as little as £3,344* – making the first step onto the property ladder far more achievable.