Many of us dream about owning our own home. There’s something incredibly comforting about having a place that is truly yours. It turns those bricks and mortar into something more meaningful. It becomes your sanctuary, a place to put down roots, and build the life you want.
But let’s be honest. For a lot of people, home ownership can feel completely out of reach. You might be wondering how anyone actually manages to save for a house in the first place. It can feel like something that only happens for other people.
The good news is that saving for a house doesn’t need to be overwhelming or complicated. With the right plan and a few realistic changes, you can take steps today that will bring your dream closer. Let’s walk through exactly how to save money for a house.
Work Out How Much You’ll Need
Before you can start saving, you need to know how much you’re aiming for. This starts with getting clear on where you want to live. Look at properties in the area you’re interested in — whether it’s a village, town or city — and check what homes are currently selling for.
Once you’ve got a rough idea of house prices, you can start working out your target. If homes in your chosen area are around £200,000, then a 10% deposit means saving £20,000. You might need more or less depending on the lender and your financial circumstances, but 10% is a good starting point.
It’s worth noting that the more you can put down as a deposit, the better your mortgage options are likely to be. You’ll also be borrowing less, which means paying less interest over the lifetime of your mortgage. Even an extra few thousand pounds saved now could make a big difference to your repayments in the long run.
You also need to consider extra charges like your solicitor fees, stamp duty and removal fees, as well as any new furniture and things like paint you might want in your new home.
Make Changes That Free Up Money
Now you’ve got a savings goal in mind, it’s time to look at how to reach it. The truth is, saving for a house usually means making some lifestyle changes. It doesn’t mean giving up everything you enjoy, but it does mean getting honest about your current spending habits.
Start by looking at where your money is going each month. Are there any expenses you could cut down or eliminate entirely?
Here are a few ideas to consider:
Cancel any subscriptions or memberships you’re not using. That includes gym memberships, streaming services or apps you forgot you were even paying for.
Swap pricey takeaways for homemade versions. Even just one less takeaway a week could mean an extra £100 a month in your savings account.
Try a lower-cost supermarket or use cashback apps like Jam Doughnut and EverUp to make your grocery shopping stretch further.
Challenge yourself to a no-spend weekend or a second-hand clothing month.
Say no to the pub now and again, and enjoy a cheaper night in with friends.
It all adds up. And the more you prioritise your savings, the faster you’ll reach your goal.
Think of it this way: every pound saved is a brick in the foundation of your future home. You don’t need to be perfect, but you do need to be consistent.
Make More Money to Boost Your Savings
Cutting back is a powerful step, but sometimes it’s not enough on its own — especially when you’re dealing with rising costs. That’s where making a bit of extra money on the side can really accelerate your house savings.
Even small amounts earned regularly can make a huge difference when you put them straight into your deposit fund. Here are some simple ways to bring in extra cash:
Sell your unwanted items on Vinted
From clothes to books to beauty products, selling on Vinted makes it easy to turn clutter into cash. I’ve shared a full guide on how to get stock for Vinted and how to get the most out of the platform if you want to turn it into a regular side hustle.
Earn cash online with Freecash
Freecash pays you for doing small online tasks like surveys, offers and games. It’s super easy to use, and you can cash out to PayPal, crypto, or gift cards. Learn more about the Freecash offers that pay you just to open a game daily.
Get rewarded with MobileXpression
This one’s almost passive. MobileXpression runs in the background on your phone and rewards you with Amazon gift cards just for letting it collect anonymous data on your browsing habits. It’s an easy way to stack up gift cards for Christmas or shift that value into your savings.
Adding just one or two of these into your weekly routine could give your house fund a serious boost. Every little helps — and if you’re consistent, that extra income can really move the needle.
Choose The Right Place To Save
Where you put your savings is just as important as how much you save. You want your money to be working for you, not just sitting in your everyday bank account.
If you’re a first-time buyer aged 18 to 39, look into opening a Lifetime ISA (LISA). You can save up to £4,000 per year and receive a 25% bonus from the government — that’s up to £1,000 a year in free money, just for saving. You can use it towards your first home, as long as the property costs £450,000 or less and you’ve had the account open for at least 12 months.
If you’re receiving certain benefits, you might also qualify for a Help to Save account. While it’s not specifically for buying a home, it offers generous bonuses that can boost your overall savings.
Keep an eye out for savings accounts with competitive interest rates, and don’t be afraid to switch if you find a better deal elsewhere. Your money should be earning interest wherever possible.
Also, consider setting up a separate savings account just for your house deposit. That way, you won’t be tempted to dip into it, and you’ll be able to see your progress clearly.
Use Tools Like Monzo Pots and Round-Ups
If you’re using a budgeting-friendly bank like Monzo, you can take advantage of features designed to help you save without even thinking about it.
Monzo Pots are like mini savings accounts within your main account. You can create a Pot specifically for your house deposit, name it something motivating like “Future Home Fund,” and set goals and deadlines. You can even lock the Pot so you’re not tempted to dip into it.
Another brilliant feature is Monzo’s round-up tool. Every time you spend, Monzo can automatically round up your transaction to the nearest pound and move the spare change into your chosen Pot. So if you spend £2.65 on a coffee, Monzo will round it up to £3 and send the 35p to your house deposit Pot.
These little amounts might seem small, but over time they really add up. Combined with regular transfers into your Pot, round-ups help you build momentum – especially on weeks where you can’t set aside a big lump sum.
Using these features turns saving into a daily habit, and that consistency can be incredibly powerful.
Not a Monzo customer yet? Join now and get £5 free.
Start Saving Today
Saving for a house isn’t just about cutting back. It’s about taking control. It’s about setting your sights on something meaningful and choosing to make it happen, one step at a time.
Yes, the numbers might feel daunting at first. But with a clear goal, a smart savings plan, and a willingness to make a few changes, your dream home could be closer than you think.
Start today, and let your future self thank you for it. You deserve a home that’s truly yours.
