Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Majority of First-Time Buyers Use Side Hustles to Save for Deposits

A recent survey by Mojo has found that almost two-thirds of first-time buyers are relying on side hustles to help save for a home deposit. The survey, which included 1,000 prospective homeowners, revealed that 64% of respondents had a side hustle contributing to their deposit or savings.

More than half of those surveyed said that without this additional income, it would have taken them an extra two to three years to get onto the property ladder. Nearly 72% estimated it would have taken between two and five years longer to save enough for a deposit without a side hustle.

Among younger buyers aged 18-24, almost 72% reported using a side hustle to support their home buying goals, the highest proportion of any age group. The survey also found that a quarter of respondents had hidden spending from a partner to improve their mortgage chances, and 18.4% reported having undisclosed debt, such as loans or credit card balances.

Many first-time buyers are closely monitoring changes in affordability, with nearly half saying they recalculate their mortgage affordability based on the latest news and market developments. The survey highlighted changing attitudes towards property ownership, with more than half of respondents open to buying a home with a friend or family member to improve their chances of getting on the property ladder. Nearly 18% would consider purchasing with a close friend, rising to 22% among those aged 18-24. In contrast, more than a quarter of respondents aged 45-54 said they would only consider buying alone.

More than a third of respondents said they had stayed in rented accommodation longer than planned while building up savings. The survey also noted that over one in five respondents had remained in a toxic job to maintain their financial position. Respondents indicated that the education system had not prepared them for the realities of mortgages and homeownership, with this view most strongly felt in Scotland and the North West of England.

These findings highlight the ongoing challenges faced by first-time buyers and the impact on the UK rental market, with many renters delaying their move to homeownership while they save for a deposit.