Six ways to get on the property ladder faster
Your first home will likely be the biggest thing you need to save for, which can feel daunting. Understanding the costs involved can help you work out a plan to get your first home faster.
So how do you get on the property ladder quicker?
1. Know the costs of buying a home
If you want to get on the housing ladder someday, it helps to know roughly how much money you’ll need to put away.
Some numbers to think about:
- Average property prices. According to Rightmove, the average property price in the UK was £366,592 in November 2024. Of course, this varies depending on where you want to live, unsurprisingly this average is higher in London.
- Average deposit you’ll need. Again, this will vary, although most banks prefer that first-time buyers pay a deposit of at least 10% of the price of the property, but you might be able to get a mortgage with as little as 5%. Putting down a higher deposit has two advantages: you'll need to borrow less money and you may be able to get a lower interest rate, so you’ll pay less each month.
- Additional costs. These can include Stamp Duty, solicitor fees, surveys and moving costs. We’ve done a deep dive into these, and more, in our article about the extra costs of buying a house.
Do first-time buyers pay Stamp Duty Land Tax (SDLT)?
Sometimes! If you're buying your first home in England or Northern Ireland, from 1 April 2025 you'll need to pay Stamp Duty if the property costs more than £300,000.
This means you won't pay any Stamp Duty if your first home costs less than £300,000. But if it costs more than £300,000, you’ll need to pay 5% on the portion from £300,000.01 to £500,000.
However, if your first home costs more than £500,000 you'll be charged the same rate as those who've bought property before. This means you don't pay Stamp Duty on the amount up to £125,000 (instead of the £300,000 relief threshold for first-time buyers whose property costs less than £500,000). You then pay a percentage on the rest depending on how much the home is worth.
You can use the government's Stamp Duty calculator to work out how much you'd need to pay from 1 April 2025.
Top tip. The costs involved with buying your first home vary, and they can also change in the future. So, although it’s useful to have an idea of how much you’ll need to save, it’s worth reviewing this if you've been saving for a while.
Before long, you’ll be reading every article about buying houses like it’s your job!
2. Start early if you can
The best time to start saving for your first home is now.
Even if you’re not planning to buy for a while, if you can afford to start putting some money aside now, that first step on the property ladder might start to feel more reachable!
Your future self will thank you.
Didn’t start early? Don’t despair if you’re no longer in your 20s. Depending on your circumstances, buying your first home when you’re 40 might actually be a better choice for you than buying it earlier in life.
3. See where you can cut your spending
An oldie but a goodie. It’s not always easy, but it pays to give your outgoings a proper review. If you’re renting, would moving back in with your parents or doing a house share be an option? Can you be stricter about what you spend your money on, while still enjoying your life? And no, you don’t necessarily have to cancel your Netflix subscription…
4. Boost your income or earning potential
Taking on multiple extra jobs may not be realistic and could be a fast track to burnout.
But are there any ways you can make a bit of money alongside your main income? Or you could see if it’s possible to increase your current salary or learn more skills. This could land you a better paying role, either with your current employer or at a brand new job.
5. Stick to your budget
Try not to fall into the trap of emotional spending. Manifesting your future home and telling people what you’re working towards can be a great way to fight temptation.
Tell yourself you’re not buying something because you’re choosing your homeowner dreams instead.
6. Use a lifetime ISA to build your deposit faster
Making sacrifices and sticking to your budget will feel tough at times. All this scrimping and saving deserves a boost, which is where a lifetime ISA comes in.
If you’re saving for your first home and you’re aged 18-39 (inclusive), a lifetime ISA could help you build your deposit fund faster. This is thanks to the generous government bonus. For every £100 you pay in, the government pays in another £25. As you can invest up to £4,000 each tax year, you could earn up to an extra £1,000 each year!
There are lifetime ISA rules you need to be aware of. If you don’t stick to these rules, you’ll have to pay the government withdrawal charge. This charge is 25% of everything you take out, which could leave you with less money than you put in.
To stick to the lifetime ISA rules, you must:
- use your lifetime ISA to buy your first home, that you intend to live in, with a mortgage. Or, after the age of 60 you can use the money however you like.
- buy a property costing no more than £450,000
- keep it open, with money in it, for at least 12 months before using it to buy your home
- use a conveyancer/solicitor to act for you in the purchase of your home (your lifetime ISA provider will pay the funds directly to them).
If you use your lifetime ISA in the way the government intended, it can be a gamechanger when it comes to building your first home fund. Even better, if you’re buying with a partner, they can use their lifetime ISA too (if they’re eligible to take out the product)!
Not 100% sure whether to go down the homeownership route, or if you want to wait until you're 60 to access your money? A product like our Stocks and Shares ISA might be a better fit for any long-term goals you have. You can use the money however you want - and you can always open a lifetime ISA later, when you're more sure.
Try not to compare yourself to others
You might feel deflated if it feels like everyone you know is somehow able to jump onto the property ladder. But each person’s circumstances are different. Keep focusing on your own path and doing what’s in your control. You do you!
Most importantly: get started
Got £25 in your current account? If you put it in a lifetime ISA now you'll be taking your first big step towards owning your own home. OneFamily's Lifetime ISA invests in stocks and shares. This means it has good long-term growth potential, but the value of your investments could go down as well as up so you could end up with less money than you've put in.
Not yet sure if now’s the time? Sign up to receive our lifetime ISA guide by email using the form on this page.
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