Saving for a Deposit: How Parents Can Help First-Time Buyers

Getting onto the property ladder is one of the biggest milestones for young people, but rising property prices and high deposit requirements often make it feel like an uphill battle. As parents, you want to see your children succeed, and offering practical advice and a bit of support where you can, can make all the difference. 

Here’s how you can help your children save for a deposit effectively, with a little help from Move Justizia.  

1. Set a Clear Goal Together

Helping your child understand how much they need to save is the first step. You can start by: 

• Researching property prices in their chosen location. 
• Calculating the deposit: Most lenders require a minimum of 5-10% of the property value, but saving for 20% could open doors to better mortgage deals. 
• Factoring in additional costs: These include legal fees, stamp duty (if applicable), and moving costs, which can add thousands to the budget. 

2. Open a Dedicated Savings Account

Encourage your child to use a savings account designed for first-time buyers, such as Lifetime ISAs or high-interest savings accounts.

• Lifetime ISAs (LISA): These accounts let them save up to £4,000 annually, with a 25% government bonus added for first-time home purchases. That’s an extra £1,000 each year if they save the maximum! 
• High-interest savings accounts: For additional savings beyond a LISA, a competitive savings account ensures money grows steadily. 

By keeping these funds separate, they’ll be less tempted to spend on non-essentials.  

3. Create a Realistic Budget

Budgeting is crucial for anyone saving for a deposit. Work with your child to: 

• List essential expenses, like rent, bills, and groceries. 
• Identify 'extra’ spending that could be trimmed back, like eating out or subscriptions they don’t even use anymore. 
• Set a monthly savings target and stick to it. 

4. Explore Additional Income Opportunities

Boosting or supplementing income is one of the fastest ways to grow savings. If they’re able to, encourage your child to consider: 

• Freelance work or part-time jobs to earn extra income. 
• Clearing out and selling old or unwanted items. These can bring in extra cash while decluttering their space. 

At Move Justizia, we offer advice on maximising financial opportunities and planning for future homeownership. 

5. Minimise Living Costs Where Possible

Reducing outgoings is another way to save more each month. Your child could: 

• Live at home: Temporarily moving back with family can drastically cut expenses. 
• Share accommodation: Splitting costs with flatmates can save hundreds on rent and bills. 

Move Justizia can help evaluate financial scenarios to find the most practical option for your family. 

6. Use Government Schemes and Support

It’s worth exploring government-backed schemes designed to help first-time buyers. In England, they could get:

• A home for less than its market value if they're a first-time buyer.
• A home through shared ownership, allowing buyers to purchase a portion of a property and pay rent on the rest, making homeownership more accessible. 
• Lower rent payments to help save for a deposit if they're a tenant.
• A loan to help with the cost of building a home or hiring someone to build one.

Bear in mind, they can no longer open a Help to Buy ISA. Check out more affordable home ownership schemes on GOV.UK here.

7. Start Early Estate Planning

If you’re in a position to help financially, consider gifting or lending money for the deposit. This approach can also have inheritance tax benefits, as long as you live at least seven years after making the gift. 

8. Stay Motivated and Track Progress

Saving for a deposit can feel overwhelming, especially when progress seems slow, but don’t let that get in the way of their dream house. Encourage your child to: 

• Set small milestones: Celebrate reaching 25%, 50%, or 75% of their target to stay motivated. 
• Visualise their goal: Picture the home they want to buy and the lifestyle it will offer. 
• Use Move Justizia’s tools to move smarter, not harder. 

Saving for a deposit requires determination, planning, and the right support. By following these strategies and making the most out of Move Justizia’s resources, your child can take a confident step towards owning their first home. And you can be by their side as they do so.

Ready to support your child’s journey? Sign up here for expert advice and practical tools to simplify every step of the home-buying process. Together, we can make their dream of homeownership a reality.