Four in five first-time buyers moved back in with parents to save for a deposit, according to a new report from TSB, highlighting the continued financial strain facing those entering the housing market.

The bank surveyed more than 1,000 buyers who had purchased a home in the past year.

It found that 80% had returned to the family home to cut costs, while nearly all (96%) received some form of financial help to raise a deposit. Most turned to family (68%) or friends (57%) – a trend TSB says is becoming increasingly common.

LOCATION, LOCATION, LOCATION

Three quarters (75%) said they had settled for fewer bedrooms, smaller homes or less outdoor space in order to buy in their preferred location.

While 22% said they secured their dream home, 38% admitted to minor compromises, and 9% said affordability and location had come first.

To get on the ladder, 38% delayed major purchases, 37% limited socialising and 37% took on a second job.

Buyers saved for an average of 2.95 years, stretching to 3.39 in Wales and falling to 2.56 in the East Midlands.

The average deposit across the UK now stands at 18.9%, rising to 23% in London and dropping to 13% in Wales. The average age of a first-time buyer is now 32.

COMPROMISE IS KEY

Craig Calder, Director of Secured Lending, TSB, said: “It’s clear that compromise is key to getting on the housing ladder in a preferred location – with most first-time buyers forgoing a dream home but feeling relieved, and more financially secure having made the move.

“Many made sacrifices to meet their deposit targets – such as moving in with parents, and taking a second job.”