Still renting in your 30’s? Read this now!

If you’re reading this as a tenant in your 30’s, then don’t worry as you’re not the only one! You might be wondering how you’ll ever be able to own your own home? It might seem obvious but the importance of saving for your first home is completely understated.

As the cost of living increases, so do the costs of renting. In fact, rent prices have been steadily rising in many areas over the past few years, and this trend is expected to continue as more and more landlords choose to exit the buy-to-let market due to the volatility of interest rates. This means that the longer you wait to start saving for a down payment on a home, the more difficult it will be to save enough money to get the keys to your own home.

Saving for a deposit on a home is obviously an enormous challenge, especially if you're already paying high rent prices and are not yet seeing your wages grow to compensate. However, the sooner you start saving, the more time you have to build up your savings and the less you'll have to worry about rising rent costs eating into your budget in the future.

One way to start saving for your first home is to set a budget and stick to it. This means cutting back on unnecessary expenses and finding ways to save money wherever possible. You may also want to consider getting a side job or starting a side hustle to earn extra income that you can put towards your down payment. Many will roll their eyes at such an idea but taking control of your finances and putting a plan in place will make all the difference over the long run.

Mortgage liquidity is still pretty good and an option that many first time buyers are turning to is seek a deposit contribution from the developer of a newly built development. Some lenders offer mortgages that require as little as 5% down, which when you get this matched by the developer can give you a total deposit of 10%. That means that for a new build flat in Zone 3 or 4 (connecting you to central London in under 30 mins) you could be putting down as little as £15,000. How long would it take you to save £15k if you really put you mind to it? Perhaps not as long as you initially thought..

Ultimately, the key to saving for your first home is to start as early as possible. By getting a head start on your savings, you can take advantage of rising home values and build equity in your home over time. And with rents continuing to rise, there's no better time to start saving than right now. If you’re reading this in your 20’s, then you’ve got a great head start!