🏠 Property

How to save for
a house deposit

7 min read · Updated May 2026

Buying your own home is often a lifetime project. And it all starts with the deposit. How much do you need? How long will it take? How do you go about it? This guide gives you a concrete, step-by-step plan.

How much deposit do you need in 2026?

Lenders generally ask for 10% of the property price as a minimum deposit — or even 20% to access the best mortgage rates. Here's what that looks like in practice:

£150,000 property
£15,000
10% deposit
£220,000 property
£22,000
10% deposit
£300,000 property
£30,000
10% deposit

💡 Don't forget: On top of the deposit, budget for legal fees, survey costs and stamp duty. On a £200,000 property, expect to need £30,000 to £35,000 in total.


How long does it take to build a deposit?

It all depends on how much you can set aside each month. Here's a simulation for a target deposit of £20,000:

£200/month
8 years
for £20,000
£400/month
4 years
for £20,000
£700/month
2.5 years
for £20,000

Where should you keep your deposit?

Unlike long-term investments, a house deposit must remain accessible and safe. Here are the options that fit:

📗
Cash ISA
Tax-free · £20,000 annual allowance

Tax-free interest, accessible at any time, protected by the FSCS up to £85,000. Ideal for the "instantly available" part of your deposit.

🏦
Lifetime ISA (LISA)
25% government bonus · £4,000/year

The government adds a 25% bonus on what you save, up to £1,000 a year — specifically designed for first-time buyers. Watch the withdrawal rules.

🏠
High-yield savings account
Variable rate · No cap

A good complement once you've used your ISA allowance. Compare rates regularly — they move often. Instant access is essential.

📈
Premium Bonds
Tax-free prizes · £50,000 max

No guaranteed return, but your capital is 100% safe and prizes are tax-free. A reasonable option for part of your deposit.


A 5-step action plan

1

Define a precise goal

What kind of property? In which area? At what price? Without a specific figure, saving stays vague. "I want to save £25,000 in 4 years to buy a £200,000 flat in Manchester" — now that's an actionable goal.

2

Work out your monthly saving capacity

Review your income and expenses. Work out what you can realistically set aside each month. Even £300/month is £18,000 over 5 years.

3

Open the right accounts

A Lifetime ISA first (for the 25% bonus), then a Cash ISA, then a high-yield account beyond that. Automate the transfers on payday.

4

Cut unnecessary spending

Every pound saved is another pound of deposit. Unused subscriptions, frequent takeaways, impulse buys — find the leaks and redirect them into your savings.

5

Track your progress every month

Monthly tracking lets you adjust course, celebrate milestones and stay motivated for the long haul. Seeing your progress is one of the strongest drivers of saving.

Schemes worth knowing about

Track your deposit goal

Create a "House deposit" savings goal, track your progress month by month and use the simulator to work out your timeline. Free.

🚀 Set my goal

📖 Related articles

💰 How to save money every month 📊 The 50/30/20 rule 💸 How to avoid unnecessary spending