Many are saving £340 a month regardless
Fewer than one in five prospective first-time buyers are familiar with the First Homes or Shared Ownership schemes, according to the latest research from Barratt Homes, adding to a run of separate studies over the past year that point to the same gap.
The pattern raises questions about the structure and promotion of both schemes rather than about any single survey's findings.
The Barratt Homes study, which surveyed UK adults aged 18-29 who have not yet bought a home, is not an isolated finding.
Research published in April 2026 found comparable confusion around Shared Ownership specifically: 37% of respondents believed the scheme was open only to first-time buyers, and 28% were unsure who could qualify, despite it being available to anyone meeting income and affordability criteria.
Terry Higgins, group managing director at TNHG Mortgage Services, said at the time that shared ownership "is available to anyone who meets the income and affordability criteria, not just first-time buyers," adding that buyers should compare all available schemes before deciding, since the scheme also carries ongoing rent on the unowned portion of a property.
Structural factors may also play a part in why First Homes in particular remains little known. The scheme offers eligible buyers a discount of 30% to 50% on new-build properties, capped at £250,000 after discount outside London and £420,000 within it, and restricted to households earning £80,000 or less (£90,000 in London).
Buyers must fund at least half the discounted price through a mortgage, and the scheme is currently supported by a smaller pool of lenders than the wider mortgage market, according to industry guides, rather than the full range of high-street providers.
Despite the low familiarity with support schemes, 48% of Barratt's respondents said they expect to buy their first home before the age of 30. A further 25% believe their first purchase will happen between the ages of 30 and 34, and 16% expect to buy after turning 35. Eleven percent said they do not expect to buy a home at any point in their lifetime.
Deposit-building continues under pressure
Respondents reported saving an average of £340 per month towards a deposit. Saving levels varied: 18% said they are not currently saving anything, while among those who are, 20% put away between £100 and £299 a month and another 20% save between £500 and £699.
Smaller proportions save less than £100 (11%), between £300 and £499 (17%), between £700 and £899 (7%), or £900 and above (7%).
Separate research published in recent weeks found that saving for a deposit is the largest single confidence gap for Gen Z buyers, cited by 39% of respondents, with a further 36% saying they were unsure how much they would be able to borrow.
Helping first-time buyers was also the most commonly cited housing priority among Gen Z respondents in that study, selected by 29%.
Extra income and shared living
To build their deposits, some Barratt respondents have taken on additional sources of income. The research found that 24% have taken on extra shifts or overtime, 21% have a second job or side hustle, and 19% are living with parents for longer to reduce their outgoings.
The most common saving method overall was placing money into a dedicated savings account, used by 49% of respondents, followed by cutting non-essential spending, reported by 38%.
Other methods included cashback or rewards apps (20%), selling unwanted items (19%), investing in stocks and shares (16%), saving bonuses and windfalls (11%), sharing accommodation (8%), and savings challenges (8%).
The awareness gap sits against a backdrop of FCA lending data for the first quarter of 2026, which showed first-time buyer mortgage advances falling to 27.4% of all owner-occupier lending, down 3.9 percentage points year-on-year.
Kayleigh Jackson, mortgages sales manager at Mojo Mortgages, said the single biggest misconception buyers hold is that saving a large deposit is the only hurdle that matters.
Provider's view on the findings
Adrian MacDiarmid, head of mortgage lender relations at Barratt Homes, said the results point to an optimistic outlook among Gen Z buyers, given that 48% believe they will be on the property ladder before turning 30.
He added that "there is clearly still some way to go, as cost-of-living pressures continue to make it difficult for younger people to put money aside towards a deposit."
Despite low awareness levels, uptake of Shared Ownership has been rising. Figures published in December 2025 showed increasing use of the scheme among first-time buyers, with Roy Hind, affordable housing director at Connells Group, saying that demand to step onto the property ladder is clearly there, even as affordability remains a constraint on activity.
Alongside the survey, Barratt Homes set out five recommendations for those working towards a deposit: reviewing recent spending to identify where costs could be reduced, automating monthly transfers into a savings account, maintaining a strong credit profile through electoral roll registration and timely payments, building an emergency fund covering at least one month of essential expenses, and selecting a savings vehicle suited to individual timeframes and access needs, from easy-access accounts to Lifetime ISAs.
The recurrence of similar findings across multiple, unconnected studies over the past 12 months suggests the awareness gap is a persistent feature of the market rather than a one-off survey result.
