Nearly half say extra work is helping as housing costs and deposits remain the main obstacles to homebuying
Prospective first-time buyers are increasingly turning to secondary income to raise a deposit, with about half (49%) saying they have taken on a side job to accelerate their savings, Santander UK has reported.
The lender’s research suggests confidence remains constrained by affordability pressures. Seven in 10 aspiring buyers said home ownership was difficult for young people, while 77% believed earlier generations found it easier to put money aside for a first property.
Respondents identified the biggest barriers as high house prices (78%), the rising cost of living (75%) and large deposit requirements (59%). More than a quarter (28%) said they could not depend on help from family to support a purchase.
Despite these concerns, 72% said owning a home was still a priority. Santander said this had contributed to a rise in “home hustling”, with additional earnings used to top up savings.
Those who reported having a side income said they earned an average of £442.62 a month, typically for about seven hours’ work a week. Santander said 12% of “hustlers” earned more than £1,000 a month. Among those with side income, 64% said they saved most or all of it towards a deposit.
The most common activities included completing surveys (39%), gardening (20%), selling personalised items such as cards and gift wrap (19%), selling home baking (18%) and dog walking (17%).
Other approaches to boosting savings included setting aside the whole of any bonus or pay rise (24%), using savings challenges such as “penny a day” or “envelope” methods (23%), and swapping skills with friends, such as DIY in return for seamstress work (10%). Santander said 23% had sold childhood collectibles, including Beanie Babies or Pokémon cards, to add to deposit funds.
The research also pointed to common beliefs holding other first-time buyers back from exploring homeownership. One in five (19%) believed a minimum £50,000 deposit was required, while 17% thought the maximum loan-to-value available to them was 95%. A quarter (26%) said they believed affordability had worsened over the past year.
“Home hustling is just one-way would-be buyers are boosting their income streams, expediating the time it takes to save for a deposit, stamp duty and legal costs as they take back control of their homeownership journey,” said David Morris (pictured right), director of mortgages at Santander UK.
“But it’s clear that many common misconceptions still exist. This is where mortgage brokers provide invaluable support for first-time buyers, helping them to see behind the interest rates and headlines, and understand what options are available to them.”
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