A comprehensive study by mortgage broker Mojo Mortgages has uncovered striking regional differences in the time it takes for solo homebuyers to save for a deposit across the UK.
The research comes after Mojo Mortgages witnessed a significant uptick in the number of solo homebuyers, with a 60% increase in the last year.
Region-by-Region: How Much Renting Costs in 2024
As part of their analysis, Mojo Mortgages has uncovered how much renting costs in the UK, including other household bills like council tax and electricity, as well as recreational costs such as gym fees, alcohol, and clothing.
Below is a detailed breakdown of average monthly living expenses when renting with one other person:
| Region | Monthly Room Rent | Additional Bills/Outgoings* | Total Outgoings |
| London | £995 | £1,078 | £2,073 |
| South East | £741 | £1,088 | £1,829 |
| Scotland | £716 | £1,056 | £1,772 |
| East of England | £671 | £1,088 | £1,759 |
| South West | £664 | £1,088 | £1,752 |
| North West | £604 | £1,088 | £1,692 |
| Wales | £572 | £1,091 | £1,655 |
| East Midlands | £565 | £1,088 | £1,653 |
| West Midlands | £560 | £1,088 | £1,648 |
| North East | £550 | £1,088 | £1,638 |
| Yorkshire and Humberside | £556 | £1,076 | £1,632 |
| Northern Ireland | £573 | £1,048 | £1,621 |
*Other bills include council tax, water, gas, electricity, entertainment, insurance, transport, food shopping, recreation, clothing, vices, and health. As council tax can differ throughout the UK, this highlights the differing prices.
London remains the most expensive region for renters, with total monthly costs averaging £2,073, driven by high demand and limited supply. The average room rent in London stands at £995, nearly double that of the cheapest region, the North East, where room rent averages just £550. With other household bills and expected outgoings, the average person in the North East spends £1,638 per month, making it one of the cheapest regions in the UK for renters.
However, those in Northern Ireland have the lowest outgoings per month, with average living costs of around £1,621 per month—approximately 27% cheaper than in London.
How Long It Takes Solo First-Time Buyers to Save For a Deposit Around the UK
Mojo Mortgages has crunched the numbers to reveal how long it takes solo first-time buyers to save for a deposit across different UK regions. They calculated this by:
- Determining disposable income after rent and bills (based on the above table)
- Estimating savings as two-thirds of disposable income
- Calculating time to save a 15% deposit based on a first-time buyer’s average house price in 2024
The results? On average, a solo buyer in the UK needs 7 years and 3 months to save a 15% deposit. But this timeline varies dramatically by region:
| Region | Predicted Savings Per Month | Average House Price | Average Deposit (15%) | Time to Save for a House |
| East of England | £285 | £308,100 | £46,215 | 13 years, 6 months |
| South East | £394 | £308,100 | £46,215 | 9 years, 9 months |
| London | £582 | £436,475 | £65,471 | 9 years, 4 months |
| South West | £362 | £225,940 | £33,891 | 7 years, 10 months |
| West Midlands | £413 | £195,130 | £29,270 | 5 years, 11 months |
| East Midlands | £482 | £195,130 | £29,270 | 5 years, 1 month |
| Wales | £383 | £154,050 | £23,108 | 5 years, 1 month |
| North West | £385 | £154,050 | £23,108 | 5 years |
| Yorkshire and Humberside | £380 | £143,780 | £21,567 | 4 years, 9 months |
| North East | £348 | £112,970 | £16,946 | 4 years, 1 month |
| Scotland | £430 | £138,645 | £20,797 | 4 years, 1 month |
| Northern Ireland | £426 | £133,510 | £20,027 | 3 years, 11 months |
Solo first-time buyers can join the property ladder quickest in Northern Ireland. With an average house price of £133,510, buyers can save for their deposit in just 3 years and 11 months by setting aside £426 each month.
Scotland follows closely behind; those looking to buy an average-priced property can expect to save in about 4 years and 1 month, putting away approximately £430 monthly.
The North East offers a similar timeline with an average house price of £112,970, allowing renters to save for a deposit in 4 years and 1 month with monthly savings of about £348.
At the other end of the scale are the southern regions. In the East of England, renters face the longest saving period of 13 years and 6 months if they set aside £285 each month for an average house price of £308,100.
Similarly, those in the South East may need about 9 years and 9 months, saving £394 monthly for the same average house price. London presents its own challenges; despite higher salaries, first-time buyers face an average property cost of £436,475, requiring savings of £582 per month over approximately 9 years and 4 months.
While these timelines may seem daunting for some solo buyers, it’s important to remember that homeownership is achievable. Various schemes can assist first-time buyers in joining the property ladder—details of which are included in the next section.
Five Ways to Fast-Track Becoming a First-Time Buyer
To help aspiring solo homebuyers, Mojo Mortgages have also shared five smart strategies to help accelerate joining the property ladder.
- First, if you rent alone, consider flat-sharing or moving in with friends or family. Research shows that splitting rent with one other person can save you around £264 a month, totalling £3,000 a year that can go directly into your home savings.
- Consider setting up a Lifetime ISA (LISA) to boost your savings. You can save up to £4,000 each tax year, with the government adding a 25% bonus on your contributions to a maximum of £1,000 per year. Given that it takes 7 years for the average solo homebuyer to save a deposit, this could be an extra £7,000 acquired for free.
- If possible, explore Joint Borrower Sole Proprietor Mortgage (JBSP) options. This allows you to team up with up to four people—family, friends, or a partner—to pool incomes for a deposit while ensuring that only one person owns the home.
- If a JBSP isn’t possible, look into Shared Ownership options. This scheme lets you purchase a share of a property—typically between 10% and 75%—while renting the rest. It requires a smaller deposit and results in lower mortgage payments, easing your path to homeownership.
- Finally, keep an eye on the upcoming Freedom to Buy scheme. While details are still pending, this initiative may allow the government to act as a guarantor for part of your mortgage, making high loan-to-value (LTV) mortgages more accessible.
