First-time buyers should follow this key advice if you want to get on the property ladder next yearHere is the expert’s top tips for getting on the property ladder in 2026(Image: Getty Images)

With the new year fast approaching, many people will now be thinking about their plans for 2026. Financial goals often sit at the top of the list, and for anyone eyeing up their first home, planning far in advance is crucial. If buying a house is one of your goals next year, it’s important to start considering the steps you need to take to make that happen.

With the average house price for a first-time buyer home climbing to £229,648 this year, up 0.7 percent from 2024, this adds even more pressure to those looking to take their first step onto the property ladder. Thankfully, there are a few smart ways to help you start saving towards your deposit and secure a mortgage.

Senior mortgage adviser George Abouzolof from Private Finance Clifton, who specialises in bespoke solutions for first-time buyers and has deep expertise in property finance, has shared his 10 top tips to make the process easier in 2026.

Opening a savings account is an important step(Image: Getty Images)Open a savings account

“Having a savings account is an important step when saving for a mortgage, especially if you need quicker access to your money than a Cash ISA allows,” explains George. “One key benefit of a savings account is the higher interest rates, helping your money grow faster. Opting for an easy-access account also allows you to switch quickly if rates fall.”

Cancel any unused subscriptions

“While it might seem small, unused subscriptions can cost you hundreds of pounds a year, £786 to be exact,” George says. “These can include video streaming, music and gaming platforms, cloud storage, fitness memberships, even subscription boxes like beauty or coffee. Go through your subscriptions, tally up what you use and what you don’t, then cancel the rest.”

Create a monthly budget and track your spending

“It can be really difficult to save money without clear boundaries. Your budget should be based on how much you earn, how much you spend on bills, and how much you’re aiming to save,” advises George. “A popular method is the ’50/30/20′ rule, which suggests allocating 50 percent of your income to bills and other essentials, 30 percent to social activities, and the remaining 20 percent to savings.”

The mortgage expert adds: “However, if you’re really serious about saving to buy a home, you may want to consider a 50/20/30 split where you funnel a bit more into savings after taking care of all essentials.”

Avoid making large purchases

“Not only can this impact your mortgage application process, but making a large purchase, such as a car or a new electrical item, can also limit your ability to save,” George says. “Even placing these items on a monthly payment plan or using short term credit can affect your finances, as it reduces the amount you can contribute to your savings each month.

“Some mortgage deals currently offer up to £2,000 cashback, so it might make sense to delay a big purchase until you’re ready to apply. You’ll be saving for the property you want, then using the cashback to cover that big spend once your mortgage is secured.”

Open a Lifetime ISA to boost your savings

“This is a no-brainer. For every £4 you put into a Lifetime ISA, the government adds an extra £1, meaning you can grow your savings faster than with a standard savings account,” advises George. “There is, however, a limit to how much you can contribute: £4,000 each tax year. A Lifetime ISA is also ideal if you tend to dip into your savings, as it prevents withdrawals for 12 months.

“You can now pay into multiple Cash ISAs in the same tax year, as long as your total contributions stay within the £20,000 annual ISA limit.”

Moving in with family or sharing with friends can help you to save(Image: Getty Images)Live with family or find shared accommodation where possible

“Rent is usually your biggest monthly outlay if you don’t already own your home. Looking into any ways to minimise this cost is going to have the biggest impact on how much you can save each month,” George says. “If you are able to live with family without paying rent for a period, this will help a lot. If not, shared accommodation like house shares will be cheaper than renting a studio or 1-bed apartment by yourself. It all depends on how committed you are to saving and how soon you want to achieve your target deposit.”

Add no spending days to your month

“The ‘no spend challenge’ is exactly what it sounds like, a set period where you avoid spending money on anything except essentials,” he advises. “Start by writing down a list of your essential expenses, including bills, food, and travel. Consider doing the challenge over a weekend, when spending is typically higher.”

Lower your monthly outgoings

“Monthly bills can quickly add up, and these outgoings can seriously impact your ability to save. Finding ways to reduce these fixed costs each month can make a real difference,” suggest George. “Consider switching to cheaper providers for your Wi-Fi, or gas and electricity. You can even call your suppliers to say you’re thinking of leaving, they may offer you a better deal to stay.”

The expert adds: “Running a car is also a major expense, so any steps you can take to temporarily cut costs can make a real difference.”

Set a clear goal

“Setting a financial goal is essential when saving for a house deposit. Having a realistic target helps you map out exactly how much you need to set aside each month to stay on track,” George says. “The goal should be achievable, but still push you. If it’s too ambitious, you may fall short, but if it’s too easy, it won’t motivate you to make meaningful progress.”

Automate your savings

“Moving money from your current account to your savings can feel like a job in itself, and it’s easy to forget. Setting up a direct debit for a set amount, whether at the start or end of the month (or on payday), can save you time and effort,” he says. “Just make sure the amount is affordable. You don’t want to dip into your savings to cover bills, or worse, miss payments due to insufficient funds.”